Work

Returns to Caring? Health and Well‐Being Effects of Subsidized Long‐Term Care

Year: 2026

Type: article

Abstract: ABSTRACT We estimate the health and well‐being effects of subsidized access to long‐term care (LTC). Our analysis exploits the staggered implementation of Spain's 2007 System of Autonomy and Care for Dependent People (SAAD), which expanded publicly funded and universal LTC subsidies and supports, as well as its subsequent reform. Using two decades of administrative and survey data and leveraging exogenous regional and individual‐level variation in program exposure, we find that access to SAAD benefits reduces the care receiver's depressive symptoms by approximately 10 percentage points, increases its survival probability by 2.6–3 percentage points, and raises its life satisfaction by 0.24–0.50 scale points. Cost‐effectiveness estimates indicate that the implied cost per quality‐adjusted life year (QALY) gained lies below commonly accepted efficiency thresholds for public health spending in Europe. These findings document sizeable health returns and efficiency gains from publicly subsidized LTC provision.

Source: Journal of Policy Analysis and Management

DOI: 10.1002/pam.70136

Authors: Joan Costa‐Font, Sergi Jiménez‐Martín, Cristina Vilaplana‐Prieto

Institutions: IZA - Institute of Labor Economics, London School of Economics and Political Science, Universitat Pompeu Fabra, Barcelona School of Economics, Universidad de Murcia

Language: English

Topic: Geriatric Care and Nursing Homes

Subfield: General Health Professions

Field: Health Professions

Domain: Health Sciences

SDG: Good health and well-being

Open Access status: hybrid

Estimated APC paid: $3,770