Impacts of Home-Care Subsidies: Evidence from Quasi-Random Assignment

Arbeitspapier

We study the impact of subsidizing home-based long-term care on recipients' health and the labor supply of their working-age children. We use administrative data from Israel on the universe of welfare benefit applications linked with tax records of applicants and their adult children. To address the endogeneity of benefit recipients' health status, we instrument for benefit receipt using the leniency of randomly assigned evaluators who assess the applicant's functional status and determine benefit eligibility. We find that for compliers - applicants who receive subsidies only from more lenient evaluators - subsidizing home-based care has large adverse effects on recipient health but no detectable effects on the labor market outcomes of their children. The results are consistent with the crowd-out of self-care for the marginal recipient, highlighting the need to assess the heterogeneous eects of home-care subsidies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 16551

Classification and Topics

• Classification: Wirtschaft ; Health Insurance, Public and Private ; Health: Government Policy; Regulation; Public Health ; Time Allocation and Labor Supply ; National Government Expenditures and Welfare Programs
• Subject: home-based long-term care ; labor supply

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ofek-Shanny, Yuval ; Strulov-Shlain, Avner ; Zeltzer, Dan
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/282678
• Last update: 10.03.2025, 11:45 AM CET