Long Term Care, Wealth and Housing

21 Pages Posted: 21 Dec 2015 Last revised: 12 Jul 2016

See all articles by Marija Bockarjova

Marija Bockarjova

VU University Amsterdam - Department of Spatial Economics; University of Groningen - Department of Social and Organizational Psychology

Johan Polder

Government of the Netherlands - National Institute for Public Health & the Environment

Jan Rouwendal

VU University Amsterdam - Department of Spatial Economics; Tinbergen Institute

Date Written: July 4, 2016

Abstract

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).

Keywords: demand for long-term care, elderly housing, ageing

JEL Classification: I11, I12, R21

Suggested Citation

Bockarjova, Marija and Polder, Johan and Rouwendal, Jan, Long Term Care, Wealth and Housing (July 4, 2016). Netspar Discussion Paper No. 01/2014-099, Available at SSRN: https://ssrn.com/abstract=2706434 or http://dx.doi.org/10.2139/ssrn.2706434

Marija Bockarjova (Contact Author)

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands

University of Groningen - Department of Social and Organizational Psychology ( email )

Grote Kruisstraat 2/1
9700 AH Groningen
Netherlands

Johan Polder

Government of the Netherlands - National Institute for Public Health & the Environment ( email )

3720 BA Bilthoven
Netherlands

Jan Rouwendal

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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