Nursing Home Aversion Post-Pandemic: Implications for Savings and Long-Term Care Policy

58 Pages Posted: 21 Sep 2021

See all articles by Bertrand Achou

Bertrand Achou

HEC Montreal - Retirement and Savings Institute

Philippe De Donder

University of Toulouse 1 - Toulouse School of Economics (TSE)

Franca Glenzer

HEC Montreal - Retirement and Savings Institute

M.‐L. Leroux

University of Quebec at Montreal (UQAM)

Minjoon Lee

Carleton University

Multiple version iconThere are 2 versions of this paper

Date Written: 2021

Abstract

COVID-19 outbreaks at nursing homes during the recent pandemic, which received ample media coverage, may have lasting negative impacts on individuals’ perceptions regarding nursing homes. We argue that this could have sizable and persistent implications for savings and longterm care policies. We first develop a theoretical model predicting that higher nursing home aversion should induce higher savings and stronger support for policies subsidizing home care. We further document, based on a survey on Canadians in their 50s and 60s, that higher nursing home aversion is widespread: 72% of respondents are less inclined to enter a nursing home because of the pandemic. Consistent with our model, we find that the latter are much more likely to have higher intended savings for older age because of the pandemic. We also find that they are more likely to strongly support home care subsidies.

Keywords: pandemic risk, nursing home, long-term care, savings, public policy

JEL Classification: D140, H310, H510, H530, I100, I310

Suggested Citation

Achou, Bertrand and De Donder, Philippe and Glenzer, Franca and Leroux, Marie-Louise and Lee, Minjoon, Nursing Home Aversion Post-Pandemic: Implications for Savings and Long-Term Care Policy (2021). CESifo Working Paper No. 9295, Available at SSRN: https://ssrn.com/abstract=3925327

Bertrand Achou (Contact Author)

HEC Montreal - Retirement and Savings Institute ( email )

United States

Philippe De Donder

University of Toulouse 1 - Toulouse School of Economics (TSE) ( email )

Place Anatole-France
Toulouse Cedex, F-31042
France

Franca Glenzer

HEC Montreal - Retirement and Savings Institute ( email )

United States

Marie-Louise Leroux

University of Quebec at Montreal (UQAM) ( email )

PB 8888 Station DownTown
Succursale Centre Ville
Montreal, Quebec H3C3P8
Canada

Minjoon Lee

Carleton University ( email )

1125 colonel By Drive
Ottawa, Ontario K1S 5B6
Canada

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