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The Impact of Demographic Change on Spousal Caregiving and Future Gaps in Long-term Care: Microsimulation Projections for Austria and Italy

Author

Listed:
  • Philipp Warum

    (WIFO)

  • Fabrizio Culotta

    (University of Milano-Bicocca)

  • Ulrike Famira-Mühlberger

    (WIFO)

  • Thomas Horvath
  • Thomas Leoni

    (University of Applied Sciences Wiener Neustadt)

  • Pauline Pohl

    (WIFO)

  • Martin Spielauer

    (WIFO)

Abstract

As populations age, the sustainability of long-term care systems increasingly depends on the availability of informal care, particularly from partners. This paper addresses the question of how much care we may expect partners to provide in the future by projecting demand for long-term care (LTC), the care supply mix based on current patterns, and the resulting care gaps up to 2070. Using a comparative dynamic microsimulation model, we contrast the results for Austria and Italy, two countries at very different stages in the ageing process and with pronounced institutional differences. Our results suggest that delayed widowhood due to improvements in mortality is a mitigating factor for the increased need for formal care in ageing societies, although it can only offset this increase to a limited extent. Even under optimistic assumptions, potential care gaps substantially increase in both countries, primarily due to demographic change. The size of these gaps is influenced by institutional settings, partnership patterns and gains in longevity, but no scenario reverses the overall upward trend. These findings emphasize the need for comprehensive LTC reforms that extend beyond merely promoting informal care and highlight the necessity for substantial investment in formal care infrastructure.

Suggested Citation

  • Philipp Warum & Fabrizio Culotta & Ulrike Famira-Mühlberger & Thomas Horvath & Thomas Leoni & Pauline Pohl & Martin Spielauer, 2025. "The Impact of Demographic Change on Spousal Caregiving and Future Gaps in Long-term Care: Microsimulation Projections for Austria and Italy," WIFO Working Papers 709, WIFO.
  • Handle: RePEc:wfo:wpaper:y:2025:i:709
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    References listed on IDEAS

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    1. Daniel Barczyk & Matthias Kredler, 2019. "Long‐Term Care Across Europe and the United States: The Role of Informal and Formal Care," Fiscal Studies, John Wiley & Sons, vol. 40(3), pages 329-373, September.
    2. Banks, J. & McCauley, J. & French, E., 2023. "Long-term Care in England," Cambridge Working Papers in Economics 2373, Faculty of Economics, University of Cambridge.
    3. Zhang, Jingwen & Zhang, Yanan & Bennett, Matthew R., 2025. "Spousal characteristics and unmet care needs: A longitudinal national study of adults aged 50 and over in England," Social Science & Medicine, Elsevier, vol. 365(C).
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