The Impact of Long-Term Care Insurance on Intergenerational Interaction Behavior Change in China

Xiaoyu Wang, Wenze Tian, Guohui Zhan and Yiming He ()
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Xiaoyu Wang: Guangdong University of Finance
Wenze Tian: Nankai University
Guohui Zhan: Nanjing University of Finance & Economics
Yiming He: Guangdong University of Finance

Journal of Family and Economic Issues, 2025, vol. 46, issue 2, No 20, 613-631

Abstract: Abstract China’s population shows obvious characteristics of rapid aging and growing old before getting rich. There are about 40 million disabled and partially disabled older adults, which imposes a heavy burden on families and children in terms of daily life care and home care. Since 2016, the Chinese government has been establishing a pilot long-term care insurance (LTCI) system. This study assesses the impact of participation in LTCI on behavioral changes in intergenerational interactions in urban China. Using the difference-in-differences (DID) approach, data from employees in 11 national LTCI pilot cities from four latest issues of the China Health and Retirement Longitudinal Study (CHARLS 2011–2018) were examined. The results showed that participation in LTCI decreased children’s economic support to their parents and had a significant positive effect on children’s residential geographical proximity. Heterogeneity analysis revealed that the impact of LTCI was greater in areas with higher levels of aging and households with poorer parental health. This study provides some informative empirical evidence for the development of LTCI policies. Findings are based on data from urban workers, further research should take rural residents into account and consider factors such as parent–child relationship quality and children’s filial values for a more detailed analysis.

Keywords: Long-term care insurance (LTCI); Intergenerational economic support; Intergenerational emotional ties; Difference-in-differences (DID) (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10834-024-09957-9

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