De Donder, Philippe, Achou, Bertrand, Glenzer, Franca and Lee, Minjoon (2022) Nursing home aversion post-pandemic : Implications for savings and long-term care policy. Journal of Economic Behavior and Organization, vol. 201. pp. 1-21.

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Identification Number : 10.1016/j.jebo.2022.06.034


COVID-19 outbreaks at nursing homes during the recent pandemic have received ample media coverage and may have lasting negative impacts on individuals’ perception of nursing homes. We argue that this could have sizable and persistent implications for savings and long-term care policies. Our theoretical model predicts that higher nursing home aver- sion should induce higher savings and stronger support for policies subsidizing home care. Based on a survey of Canadians aged 50 to 69, we document that higher nursing home aversion is widespread: 72% of respondents are less inclined to enter a nursing home be- cause of the pandemic. Consistent with our model, we find that these respondents are more likely to have higher intended savings for old age because of the pandemic. We also find that they are more likely to strongly support home care subsidies.

Item Type: Article
Language: English
Date: September 2022
Refereed: Yes
Place of Publication: Amsterdam
Uncontrolled Keywords: Pandemic Risk, Nursing Home, Long-Term Care Savings, Public Policy
JEL Classification: D14 - Personal Finance
H31 - Household
H51 - Government Expenditures and Health
H53 - Government Expenditures and Welfare Programs
I10 - General
I31 - General Welfare; Basic Needs; Living Standards; Quality of Life; Happiness
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 06 Sep 2022 10:41
Last Modified: 18 Jul 2023 11:52
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