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Income and the utilization of long-term care services

Evidence from the Social Security benefit notch

Bibliographic Data

ID19942776
AuthorsPierpaolo Donati (0000-0002-9794-132X), Gopi Shah Goda (0000-0003-2924-3244), Pablo García Ruiz (0000-0001-8814-9106), Ezra Golberstein (0000-0002-4780-7704), David C Grabowski (0000-0003-2915-5770)
Year2011
Volume30
Issue4
Pages719-729
Publication date2011-07-01
Open AccessYes
TypeARTICLE
VenueJournal of Health Economics (JOURNAL)
Journal identifiersISSN: 0167-6296 • E-ISSN: 1879-1646
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.jhealeco.2011.04.001
PMID21641063
OpenAlexW21641063
LanguageEN
Citations received7
References cited18

This paper estimates the impact of income on the long-term care utilization of elderly Americans using a natural experiment that led otherwise similar retirees to receive significantly different Social Security payments based on their year of birth. Using data from the 1993 and 1995 waves of the AHEAD, we estimate instrumental variables models and find that a positive permanent income shock lowers nursing home use but increases the utilization of paid home care services. We find some suggestive evidence that the effects are due to substitution of home care for nursing home utilization. The magnitude of these estimates suggests that moderate reductions in post-retirement income would significantly alter long-term utilization patterns among elderly individuals

Humanities · Political science · Philosophy · Social Sciences and Policies

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Citations per year0.7
Citation span2016 - 2024 (9)
Highly citedNo

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