Work

The impact of long-term care insurance on the developmental resilience of families

Year: 2025

Type: article

Abstract: As an important policy innovation to address the challenges of population aging, the long-term care insurance (LTCI) system provides an institutional mechanism to enhance families’ ability to withstand risks and adapt to changes through the socialized sharing of caregiving responsibilities. Using data from the 2013–2019 China Household Finance Survey, this paper systematically examines the pathways and mechanisms through which the pilot LTCI policy affects households’ developmental resilience, employing a difference-in-differences approach. The results show that the policy significantly improves households’ developmental resilience in pilot areas. Specifically, this improvement is reflected in decisions to establish new family businesses, in the enhancement of families’ risk management capabilities, and in the promotion of household asset accumulation. The effect is particularly pronounced among elderly families, families with low risk tolerance, and low-income households. This study provides empirical evidence for improving the LTCI system to support sustainable family development and offers policy implications for building a more resilient social governance system in an aging society.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2025.104728

Authors: Zumei Huang, Huarong Zhang

Institutions: Henan Finance University, Guangxi University of Finance and Economics

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Good health and well-being, No poverty, Reduced inequalities

Open Access status: gold

Estimated APC paid: $1,930