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Impact of Increased Long-Term Care Insurance Payments on Employment and Wages in Formal Long-Term Care

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  • Kondo, Ayako

    (University of Tokyo)

Abstract

This paper examines the effect of raising Long-term Care Insurance (LTCI) payments on employment and wages of workers in the long-term care (LTC) industry. Specifically, I use the change in the regional premium in 2012 as an exogenous shock to the insurance fee schedule: the change in the unit price of LTCI service ranges from a decrease of 2.8% to an increase of 4.2%. I find no increase in the number of employees in the establishments, registered under the LTCI scheme, in municipalities where the regional premium increased. The earnings and working hours of LTC workers did not increase, either.

Suggested Citation

  • Kondo, Ayako, 2019. "Impact of Increased Long-Term Care Insurance Payments on Employment and Wages in Formal Long-Term Care," IZA Discussion Papers 12383, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12383
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    References listed on IDEAS

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    1. Reagan A. Baughman & Kristin E. Smith, 2012. "Labor Mobility Of The Direct Care Workforce: Implications For The Provision Of Long‐Term Care," Health Economics, John Wiley & Sons, Ltd., vol. 21(12), pages 1402-1415, December.
    2. Office of Health Economics, 2007. "The Economics of Health Care," For School 001490, Office of Health Economics.
    3. David C. Grabowski, 2001. "Does an Increase in the Medicaid Reimbursement Rate Improve Nursing Home Quality?," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 56(2), pages 84-93.
    4. Kondo, Ayako, 2019. "Impact of increased long-term care insurance payments on employment and wages in formal long-term care," Journal of the Japanese and International Economies, Elsevier, vol. 53(C), pages 1-1.
    5. Foster, Andrew D. & Lee, Yong Suk, 2015. "Staffing subsidies and the quality of care in nursing homes," Journal of Health Economics, Elsevier, vol. 41(C), pages 133-147.
    6. Cohen, Joel W. & Spector, William D., 1996. "The effect of Medicaid reimbursement on quality of care in nursing homes," Journal of Health Economics, Elsevier, vol. 15(1), pages 23-48, February.
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    Cited by:

    1. Yakita, Akira, 2023. "Elderly long-term care policy and sandwich caregivers’ time allocation between child-rearing and market labor," Japan and the World Economy, Elsevier, vol. 65(C).
    2. Kondo, Ayako, 2019. "Impact of increased long-term care insurance payments on employment and wages in formal long-term care," Journal of the Japanese and International Economies, Elsevier, vol. 53(C), pages 1-1.
    3. Ichiro Fukunaga & Kakuho Furukawa & Shunsuke Haba & Yoshihiko Hogen & Yosuke Kido & Tomohiro Okubo & Kotaro Suita & Kosuke Takatomi, 2023. "Wage Developments in Japan: Four Key Issues for the Post-COVID-19 Wage Growth," Bank of Japan Working Paper Series 23-E-4, Bank of Japan.

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    More about this item

    Keywords

    long-term care insurance; care workers;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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