‘Investing’ in care for old age? An examination of long-term care expenditure dynamics and its spillovers
Bibliographic Data
| ID | 21541486 |
|---|---|
| Authors | Joan Costa-Font (0000-0001-7174-7919, London School of Economics and Political Science, corresponding author), Cristina Vilaplana‐Prieto (0000-0001-7701-0934, Universidad de Murcia), Cristina Vilaplana-Prieto |
| Year | 2023 |
| Volume | 64 |
| Issue | 1 |
| Pages | 1-30 |
| Publication date | 2023-01-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Empirical Economics (JOURNAL) |
| Journal identifiers | ISSN: 0377-7332 • E-ISSN: 1435-8921 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s00181-022-02246-0 |
| PMID | 35668842 |
| OpenAlex | W4281650790 |
| Language | EN |
| Citations received | 3 |
| References cited | 55 |
We study the dynamic drivers of expenditure on long-term care (LTC) programmes, and more specifically, the effects of labour market participation of traditional unpaid caregivers (women aged 40 and older) on LTC spending, alongside the spillover effects of a rise in LTC expenditure on health care expenditures (HCE) and the economy (per capita GDP). Our estimates draw from a panel of more than a decade worth of expenditure data from a sample of OECD countries. We use a panel vector auto-regressive (panel-VAR) system that considers the dynamics between the dependent variables. We find that LTC expenditure increases with the rise of the labour market participation of the traditional unpaid caregiver (women over 40 years of age), and that such expenditures rise exerts large spillover effects on health spending and the economy. We find that a 1% increase in female labour participation gives rise to a 1.48% increase in LTC expenditure and a 0.88% reduction in HCE. The effect of LTC spending over HCE is mainly driven by a reduction in inpatient and medicine expenditures, exhibiting large country heterogeneity. Finally, we document significant spillover effects of LTC expenditures on per capita GDP
Demographic economics · Econometrics · Economics · Labour economics · Long-term care · Macroeconomics · Panel data · Per capita · Spillover effect · Global Health Care Issues · Healthcare Systems and Reforms · Intergenerational Family Dynamics and Caregiving · Medicine
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| Citations per year | 1 |
|---|---|
| Citation span | 2023 - 2026 (4) |
| Highly cited | No |