Social Security Income and Informal Home Care: Evidence from the Social Security Notch

Posted: 28 Jun 2013 Last revised: 7 Oct 2014

See all articles by Yuping Tsai

Yuping Tsai

Government of the United States of America - Centers for Disease Control and Prevention (CDC)

Date Written: October 7, 2014

Abstract

This paper exploits Social Security law changes to identify the effect of Social Security income on the use of formal and informal home care by the elderly. Results from an instrumental variables estimation strategy show that as retirement income increases, elderly individuals increase their use of formal home care and become less likely to rely on informal home care provided to them by their children. This negative effect on informal home care is most likely driven by male children withdrawing from their caregiving roles. The empirical results also suggest that higher Social Security benefits would encourage the use of formal home care by those who would not have otherwise used any type of home care and would also encourage the use of both types of home care services among elderly individuals.

Keywords: Social Security, Long-term care

JEL Classification: H55, I10, J14

Suggested Citation

Tsai, Yuping, Social Security Income and Informal Home Care: Evidence from the Social Security Notch (October 7, 2014). Forthcoming, Journal of Health Economics, Available at SSRN: https://ssrn.com/abstract=2286152 or http://dx.doi.org/10.2139/ssrn.2286152

Yuping Tsai (Contact Author)

Government of the United States of America - Centers for Disease Control and Prevention (CDC) ( email )

1600 Clifton Road NE, MS A19
Atlanta, GA 30329
United States

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