11 Aug 2015
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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