Long term care, wealth and housing

We study long-term care demand in the Netherlands for a sample of elderly Dutch households using detailed administrative data. Long-term care in the Netherlands is provided by a public health care system that is generous in comparison to that in many other countries, but offers few possibilities for differentiation. Moving to a nursing home is generally postponed as long as possible because of the loss of privacy involved, while use of care at home increases. We test three hypotheses: i) wealthier people are better able to postpone a move to a nursing home, ii) those who own the house in which they live stay there longer when health deteriorates, and iii) those living in a house that is especially suitable for elderly are better able to postpone a move to nursing home. Results of our analyses confirm hypothesis i) but reject or do not find substantial evidence to confirm ii) and iii).

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

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