The ability to pay for long-term care in the Netherlands: A life-cycle perspective
Hussem,Arjen van Ewijk,Casper ter Rele,Harry Wong,Albert
Hussem,Arjen
van Ewijk,Casper
ter Rele,Harry
Wong,Albert
Abstract
This paper uses synthetic life-cycle paths at the individual level to analyze the distribution of long-term care expenditures in the Netherlands. Using a comprehensive set of administrative data 20,000 synthetic life-cycle paths of household income and long-term care costs are constructed using the nearest neighbor resampling method. We show that the distribution of these costs is less skewed when measured over the life-cycle than on a cross-sectional basis. This may provide an argument for self-insurance by smoothing these costs over the life-cycle. Yet costs are concentrated at older ages, which limits the scope for self-insurance. Furthermore, the paper investigates the relation between long-term care expenditures, household composition, and income over the life-cycle. The expenditures on a lifetime basis from the age of 65 are higher for low income households, and (single) women.
Description
Date
2016-06
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Research Projects
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Keywords
Life-cycle, Long-term care costs, Nearest neighbor resampling method, Self-insurance, C33 - Panel Data Models ; Spatio-temporal Models, D12 - Consumer Economics: Empirical Analysis, H53 - Government Expenditures and Welfare Programs, I13 - Health Insurance, Public and Private
Citation
Hussem, A, van Ewijk, C, ter Rele, H & Wong, A 2016, 'The ability to pay for long-term care in the Netherlands : A life-cycle perspective', Economist-Netherlands, vol. 164, no. 2, pp. 209-234. https://doi.org/10.1007/s10645-016-9270-7