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A panel multinomial logit analysis of elderly living arrangements: Evidence from aging in Manitoba longitudinal data, Canada

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  • Sarma, Sisira
  • Simpson, Wayne

Abstract

Utilizing a unique longitudinal survey linked with home care use data, this paper analyzes the determinants of elderly living arrangements in Manitoba, Canada using a random effects multinomial logit model that accounts for unobserved individual heterogeneity. Because current home ownership is potentially endogenous in a living arrangements choice model, we use prior home ownership as an instrument. We also use prior home care use as an instrument for home care and use a random coefficient framework to account for unobserved health status. After controlling for relevant socio-demographic factors and accounting for unobserved individual heterogeneity, we find that home care and home ownership reduce the probability of living in a nursing home. Consistent with previous studies, we find that age is a strong predictor of nursing home entry. We also find that married people, those who have lived longer in the same community, and those who are healthy are more likely to live independently and less likely to be institutionalized or to cohabit with individuals other than their spouse.

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  • Sarma, Sisira & Simpson, Wayne, 2007. "A panel multinomial logit analysis of elderly living arrangements: Evidence from aging in Manitoba longitudinal data, Canada," Social Science & Medicine, Elsevier, vol. 65(12), pages 2539-2552, December.
    • Handle: RePEc:eee:socmed:v:65:y:2007:i:12:p:2539-2552
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    2. Sarma, Sisira & Hawley, Gordon & Basu, Kisalaya, 2009. "Transitions in living arrangements of Canadian seniors: Findings from the NPHS longitudinal data," Social Science & Medicine, Elsevier, vol. 68(6), pages 1106-1113, March.
    3. Park, Gum-Ryeong & Grignon, Michel & Young, Marisa & Dunn, James R., 2022. "How do housing asset and income relate to mortality? A population-based cohort study of 881220 older adults in Canada," Social Science & Medicine, Elsevier, vol. 314(C).
    4. Fan, Ying & Fang, Shuai & Yang, Zan, 2018. "Living arrangements of the elderly: A new perspective from choice constraints in China," China Economic Review, Elsevier, vol. 50(C), pages 101-116.
    5. van den Bosch, Karel & Geerts, Joanna & Willemé, Peter, 2013. "Long-term care use and socio-economic status in Belgium: a survival analysis using health care insurance data," MPRA Paper 111128, University Library of Munich, Germany.
    6. Maša Filipovič Hrast & Richard Sendi & Boštjan Kerbler, 2020. "Housing Choices of Older People: Staying or Moving in the Case of High Care Needs," Sustainability, MDPI, vol. 12(7), pages 1-20, April.

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