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Care choices in Europe: To each according to his needs?

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  • Heger, Dörte
  • Korfhage, Thorben

Abstract

Growing long-term care (LTC) needs represent a major challenge for our ageing societies. Understanding how utilization patterns of different types of care are influenced by LTC policies or changes in the population composition such as age patterns or health can provide helpful insight on how to adequately prepare for this situation. To this aim, this paper explores how individuals choose between different forms of LTC. We exploit variation between countries as well as between individuals within countries using data from the Survey of Health, Ageing, and Retirement in Europe (SHARE). Using nonlinear decomposition techniques, we break down the difference in utilization rates between countries into differences based on observed sociodemographic and need related characteristics and differences in the impacts of these characteristics, which allows us to identify the drivers behind differences in the formal-informal care mix. Our results show that a substantial fraction of the observed country differences can be explained by the different features of the LTC systems.

Suggested Citation

  • Heger, Dörte & Korfhage, Thorben, 2016. "Care choices in Europe: To each according to his needs?," Ruhr Economic Papers 649, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  • Handle: RePEc:zbw:rwirep:649
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    Cited by:

    1. Eva Boj del Val & M. Mercè Claramunt Bielsa & Xavier Varea Soler, 2020. "Role of Private Long-Term Care Insurance in Financial Sustainability for an Aging Society," Sustainability, MDPI, Open Access Journal, vol. 12(21), pages 1-21, October.
    2. Korfhage, Thorben, 2019. "Long-run consequences of informal elderly care and implications of public long-term care insurance," Ruhr Economic Papers 813, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Geyer, Johannes, 2020. "Notes about Comparing Long-Term Care Expenditures across Countries. Comment on "Financing Long-Term Care: Lessons from Japan"," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 80-82.
    4. Attila Bartha & Violetta Zentai, 2020. "Long-Term Care and Gender Equality: Fuzzy-Set Ideal Types of Care Regimes in Europe," Social Inclusion, Cogitatio Press, vol. 8(4), pages 92-102.
    5. Stefan Greß & Klaus Stegmüller & Sabine Strüder & Dörte Heger & Thomas Gerlinger, 2017. "Abschluss der Pflegereform: Ist die Pflegeversicherung zukunftsfest?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(05), pages 03-15, March.
    6. Johannes Geyer & Thorben Korfhage, 2018. "Labor supply effects of long‐term care reform in Germany," Health Economics, John Wiley & Sons, Ltd., vol. 27(9), pages 1328-1339, September.

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    More about this item

    Keywords

    Long-term care; informal care; international comparison; decomposition;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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