Nursing home aversion post-pandemic: Implications for savings and long-term care policy

Abstract

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.

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Replaces

Philippe De Donder, Bertrand Achou, Franca Glenzer, Minjoon Lee, and Marie-Louise Leroux, “Nursing home aversion post-pandemic: Implications for savings and long-term care policy”, TSE Working Paper, n. 21-1249, September 2021.

Reference

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