Many scholars attribute the slowdown of economic growth to population aging and its negative impact on the size of the labor force. Meanwhile, government programs targeting an aging society can generate work disincentives. This paper studies the unintended labor market effects of Longterm Care Insurance (LTCI) among people of older age by exploiting the launch of the LTCI program in China. We find that policy-covered older adults decreased labor market engagement, significantly increasing the probability of exiting the labor market completely or not working fulltime. We also document more substantial effects among those with low income, poor health, advanced age, and few children. The forgone wages of older adults account for >0.25% of GDP. These findings have policy implications for countries "growing old before getting rich."
本研究为自然科学基金重点项目：大数据环境下医保资源优化配置的支付机制与政策研究（批准号：72334002）资助研究成果。
