The Common Prosperity Effect of Long-term Care Insurance System:From the Perspective of Family Care Decision and Risk Diversification
Long-term care insurance(LTCI)is an important institutional arrangement designed to improve the social security system in China.Analysing its impact on common prosperity from an income growth and distribution perspective is of practical significance.Drawing on the unitary household decision-making theory,this paper constructs a household utility maximization model,and uses the difference-in-differences technique to identify the causal effect of the LTCI pilot policy in China on household income.The results demonstrate that LTCI leads to a significant increase in household income level in pilot areas,and the mechanism of this effect lies in the fact that the LTCI pilot policy exerts an income-increasing impact by crowding out family care and creating job opportunities,which is manifested in the extension of labour hours and the expansion of employment channels.This effect is more pronounced in households that face increased risks in income loss and medical payments.A more detailed analysis reveals that the risk diversification function of the LTCI pilot policy has a profound distributional effect and can effectively reduce the urban-rural,inter-group and regional income gap.In short,the paper provides policy inspiration to promote the construction of the social security system and achieve the strategic goal of common prosperity.
social security systemcommon prosperitylong-term care insurancehousehold income
NETL
NSTL
万方数据
维普
