Discussion Paper No.1804

Abstract :
In earlier stages of economic development, women mainly provide family elderly care. With economic development, progress by women in the work force has lowered the care level. If it falls below the minimum care level for elderly parents, then children might enter into insurance contracts and even demand provision of long-term elderly care by the state. Such a change in elderly care providers is consistent with predictions that have been made in the literature. However, this paper presents the conjecture that, as wage rates rise further, children will provide sufficient elderly care to parents by purchasing market care services.

Keywords : altruistic children, economic development, informal elderly care, long-term care policy, market elderly care

JEL code: D13, D91, H55, O17