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Policy Study Policy Issues and Challenges in Welfare Policies for Elderly Care December 31, 2020

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Series No. 2020-06

Policy Study KOR Policy Issues and Challenges in Welfare Policies for Elderly Care #Welfare Policy
DOIhttps://doi.org/10.22740/kdi.ps.2020.06 P-ISBN979-11-5932-606-6 E-ISBN979-11-5932-612-7

December 31, 2020

  • 프로필
    Youngwook Lee
Summary
With rapid aging, pubic expenditure on long-term care (LTC) is expected to increase significantly. The financial burden on LTC will be even greater as women’s active economic activities and weakening social norms of elderly care are expected to reduce informal care by families. However, currently projected LTC expenditures do not take into account the decline in informal care, and as such, is highly likely to be underestimated. This study examines the relationship between informal care and formal care for the elderly, and projects future LTC expenditure according to the change in informal care. Also, this study investigates the implicit costs of informal care, such as a decrease in the economic activity and quality of life of caregivers, and discusses policy directions to reduce these costs and support informal care.

The empirical results show that informal care by the children serves as a partial substitution to formal care, and this effect is more evident among those aged 75 or older. Given the estimated substitution effect between informal care and formal care, the reduction in informal care is expected to increase LTC expenditure by 17 to 19%. On the other hand, informal care is provided at the expense of family members. The results show that the provision of informal care decreases the labor force participation rate and increases the probability of retirement. Also, the provision of informal care has a negative effect on the quality of life of caregivers. The cost of informal care increases as the period of care is prolonged.

Informal care is important in that it can reduce government expenditures related to elderly care and help the elderly maintain their lives at home. However, we need to take into account the costs paid by caregivers. In this sense, the support for informal care needs to be strengthened. It is necessary to encourage the use of family leave and short-term care to provide temporary respite to caregivers, and to expand psychological counseling and treatment for them. Also, family care leave and work-hour reduction for family care should be promoted at work. In order to achieve sustainable and high-quality elderly care, it is important to make policy efforts to properly share the role of elderly care between the government and informal sector.
Contents
Preface
Executive Summary

Chapter 1 Introduction

Chapter 2 Overview of Elderly Care Systems
 Section 1 Long-Term Care (LTC) Insurance System
 Section 2 Elderly Care Services
 Section 3 Integrated Community Care

Chapter 3 Current Status and Trends in Elderly Care Provision
 Section 1 Cross-Sectional Analysis
 Section 2 Cohort Analysis

Chapter 4 Substitution Between Informal and Formal Care
 Section 1 Existing Literature
 Section 2 Research Design
 Section 3 Data
 Section 4 Analysis Results
 Section 5 Conclusion

Chapter 5 Costs of Informal Care
 Section 1 Costs to Economic Activities
 Section 2 Costs in Quality of Life Reduction
 Section 3 Conclusion

Chapter 6 Projections of Informal Care and Long-Term Care Insurance Costs
 Section 1 Cost Projection Methods
 Section 2 Descriptive Statistics
 Section 3 Cost Projection Results
 Section 4 Conclusion

Chapter 7 Policy Directions for Improving Informal Care Support
 Section 1 Existing Informal Care Support Policies
 Section 2 Directions for Improving Informal Care Support Policies

Chapter 8 Conclusion

References
ABSTRACT
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