A Country for Old Men? An Analysis of the Determinants of Long-Term Home Care in Europe
|Title||A Country for Old Men? An Analysis of the Determinants of Long-Term Home Care in Europe|
|Publication Type||Working Paper|
|Year of Publication||2011|
|Authors||S. Balia, R. Brau|
|Keywords||ageing, discrete latent factors, long-term care, proximity to death|
This paper investigates long-term home care utilisation in Europe. Data from SHARE on formal (nursing care or paid domestic help) and informal care (support provided by relatives) are used to study the probability and the quantity of both types of care being received. The overall process is framed in a fully simultaneous equation system which takes the form of a bivariate two-part model. Endogeneity and unobservable heterogeneity are addressed using a common latent factors approach. Age, disability and proximity-to-death are found to be important joint predictors of home care utilisation. The relationship between formal and informal care is small in absolute size and moves from substitutability to complementarity depending on the type of formal care considered.