Informal and formal long-term care utilization and unmet needs in Europe: examining socioeconomic disparities and the role of social policies for older adults

Viktoria Szenkurök (), Daniela Weber and Marcel Bilger
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Viktoria Szenkurök: Vienna University of Economics and Business
Daniela Weber: Vienna University of Economics and Business
Marcel Bilger: Vienna University of Economics and Business

International Journal of Health Economics and Management, 2025, vol. 25, issue 1, No 5, 87-106

Abstract: Abstract The rising number of older adults with limitations in their daily activities has major implications for the demands placed on long-term care (LTC) systems across Europe. Recognizing that demand can be both constrained and encouraged by individual and country-specific factors, this study explains the uptake of home-based long-term care in 18 European countries with LTC policies and pension generosity along with individual factors such as socioeconomic status. Using data from the Survey of Health, Ageing and Retirement in Europe conducted in 2019, we apply a two-part multilevel model to assess if disparities in use of LTC are driven by disparities in needs or disparities in use of care when in need. While individual characteristics largely affect the use of care through its association with disparities in need, country-level characteristics are important for the use of care when in need. In particular, the better health of wealthier and more educated individuals makes them less likely to use any type of home-based personal care. At the country level, results show that the absence of a means-tested benefit scheme and the availability of cash-for-care benefits (as opposed to in-kind) are strongly associated with the use of formal care, whether it is mixed (with informal care) or exclusive. LTC policies are, however, shown to be insufficient to significantly reduce unmet needs for personal care. Conversely, generous pensions are significantly associated with lower unmet needs, underscoring the importance of considering the likely adverse effects of future pension reforms.

Keywords: Long-term care; SHARE; Two-part multilevel model; Socioeconomic status; Care policy; Pension generosity (search for similar items in EconPapers)
JEL-codes: I14 I18 J18 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10754-024-09378-z

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