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

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: GLO Discussion Paper ; No. 43

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions ; Household Saving; Personal Finance ; Health: Government Policy; Regulation; Public Health ; Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination
• Subject: Long-term elderly care ; ageing ; means tested financial support ; saving rate ; difference-in-differences

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ohinata, Asako ; Picchio, Matteo
• Event: Veröffentlichung
• (who): Global Labor Organization (GLO)
• (where): Maastricht
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/156232
• Last update: 10.03.2025, 11:42 AM CET