Long-term Care Reform and the Labor Supply of Household Members – A Difference-in-differences Approach

Authors: T. Korfhage & G. Johannes                                                  Published: August 2015

In this paper, the authors analyze the labor supply effects of the introduction of the long-term care insurance (LTCI) in Germany in 1995. It was supposed to insure the entire population against the risk of LTC and to strengthen family care.

The results illustrate that while the insurance did not have a significant effect on the labor supply of women, a negative effect can be found on the labor supply of men. This includes employment rates as well as working hours.

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