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

Asako Ohinata () and Matteo Picchio

No 15/17, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: We analyse how the financial support for long-term elderly care affects the level of household savings. Using a difference-in-differences estimator, we investigate the 2002 Scottish reform, which introduced free formal personal care for all the elderly aged 65 and above residing in Scotland. Our semiparametric estimation technique allows the policy effects to be flexibly estimated across age groups. We find that the Scottish policy reduced the average household saving by about £7,200. Moreover, the estimated effects are heterogeneous across age groups of the head of household: these effects are particularly strong among those aged between 40 and 60. The largest effect is observed at age 49 with the reduction in the average household saving by £12,764.

Keywords: Long-term elderly care; ageing; means tested financial support; saving; wealth; difference-in-differences. (search for similar items in EconPapers)
JEL-codes: C21 D14 I18 J14 (search for similar items in EconPapers)
Date: 2015-07
New Economics Papers: this item is included in nep-age, nep-dem, nep-eur, nep-hea and nep-lab
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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 saving behaviour (2017)
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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