Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282678 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16551
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study the impact of subsidizing home-based long-term care on recipients' health and the labor supply of their working-age children. We use administrative data from Israel on the universe of welfare benefit applications linked with tax records of applicants and their adult children. To address the endogeneity of benefit recipients' health status, we instrument for benefit receipt using the leniency of randomly assigned evaluators who assess the applicant's functional status and determine benefit eligibility. We find that for compliers - applicants who receive subsidies only from more lenient evaluators - subsidizing home-based care has large adverse effects on recipient health but no detectable effects on the labor market outcomes of their children. The results are consistent with the crowd-out of self-care for the marginal recipient, highlighting the need to assess the heterogeneous eects of home-care subsidies.
Subjects: 
home-based long-term care
labor supply
JEL: 
I13
I18
J22
H53
Document Type: 
Working Paper

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