On the Characteristics of Reporting ADL Limitations and Formal LTC Usage across Europe

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License: CC BY 4.0
Serval ID
serval:BIB_0D15037680C5
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
On the Characteristics of Reporting ADL Limitations and Formal LTC Usage across Europe
Journal
European Actuarial Journal
Author(s)
Fuino M., Rudnytskyi I., Wagner J.
Publication state
Published
Issued date
2020
Peer-reviewed
Oui
Volume
10
Number
2
Pages
557-597
Language
english
Abstract
The increase in the proportion of elderly people in most industrialized countries triggers higher demand for long-term care (LTC) associated with limitations in activities of daily living (ADL). The aim of this research is to derive the drivers affecting the probability of reporting limitations in ADL and the probability of demanding formal LTC, e.g., personal care and services in domestic tasks. By using the most recent wave of a cross-national European survey on individuals aged over 50 years (SHARE, wave 6), we develop econometric models for identifying the effect of demographic, social and medical factors on ADL limitations and formal LTC along five conjectures. On the one hand, we analyze functional limitations and we find that characteristics such as the age, the gender, the wealth status and the education level influence the probability to report limitations. Further, while we find that pathologies significantly increase the probability to become dependent in general, the effect of cancer is lower. On the other hand, we find again an influence of the demographic and social factors on the probability to use formal LTC. We emphasize on the decrease in the probability due to the presence of the partner in the household, in particular for housekeeping tasks. This is less the case for help related with personal care. In addition, we note that pathologies such as cancer have no influence on the probability to report formal LTC while others like mental and Parkinson diseases highly increase it. We find that elderly living in countries with LTC family care schemes report less formal care than in others. This indicates the importance of LTC policies. Finally, we validate the robustness of our results by applying the models to data from earlier waves of the survey. Our findings give insights for the underwriting standards to be used in future LTC insurance products and for the design of LTC policy environments across Europe.
Keywords
long-term care, sociodemographic study, medical factors, care policies
Open Access
Yes
Funding(s)
Swiss National Science Foundation / Projects / 100018_169662
Create date
25/06/2020 17:30
Last modification date
30/10/2020 7:23
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