Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/114118
Authors: 
Ohinata, Asako
Picchio, Matteo
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 9237
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.
Subjects: 
long-term elderly care
ageing
means tested financial support
saving
wealth
difference-in-differences
JEL: 
C21
D14
I18
J14
Document Type: 
Working Paper

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