The financial support for long-term elderly care and household saving behaviour

Asako Ohinata and Matteo Picchio

No 43, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: We analyse how the financial support for long-term elderly care affects the household’s propensity to save. Using the difference-in-differences estimator, we investigate the 2002 Scottish reform, which introduced free formal personal care for all the Scottish elderly aged 65 and above. We find that the policy reduced the household saving rate by 1:9 percentage points. This amounts to an annual reduction in the flow of saving of £503. Moreover, the estimated effect is heterogeneous across the age of the head of household. The largest effect is observed when the household head is in his/her 40s, with the reduction in the saving rate of 3:5 percentage points or £1; 213 per year.

Keywords: Long-term elderly care; ageing; means tested financial support; saving rate; difference-in-differences (search for similar items in EconPapers)
JEL-codes: C21 D14 I18 J14 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-age, nep-eur, nep-hea and nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Financial support for long-term elderly care and household saving behaviour (2020)
Working Paper: The Financial Support for Long-Term Elderly Care and Household Savings Behaviour (2015)
Working Paper: The Financial Support for Long-Term Elderly Care and Household Savings Behaviour (2015)
Working Paper: The financial support for long-term elderly care and household savings behaviour (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:43

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