The ability to pay for long-term care in the Netherlands: a life-cycle perspective

This paper uses synthetic life-cycle paths at the individual level to analyze the distribution of longterm 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 forlow income households, and (single) women.

Netspar, Network for Studies on Pensions, Aging and Retirement, is een denktank en kennisnetwerk, gewijd aan het bevorderen van een beter begrip van de economische en sociale gevolgen van pensioenen, vergrijzing en ‘de oude dag’ in Nederland en Europa.

MEER OVER NETSPAR


Missie en strategie           •           Netwerk           •           Organisatie
Netspar Brief       •          Werkprogramma 2019-2023        •         Onderzoeksagenda Netspar NexT

OVER NETSPAR

Onze partners

vu
B20160708_nationale nederlanden
university-of-twente
B20160708_apg
B20160708_ministeries
Bekijk al onze partners