Permanent nursing home (NH) admissions are a frequent and major life event aimed at maintaining quality of life in old age. Yet, insights into the impact of a NH admission on well-being are scarce and inconclusive. We evaluate the effect of a NH admission on domains of well-being among those who are admitted using event study methodology for cross-sections combined with inverse probability weighting. We apply this doubly robust approach to Dutch survey data on well-being linked to extensive administrative data on NH admissions, health, and socio-economic status. We find that a NH admission leads to a temporary increase in loneliness, the risk of anxiety and depression, and a loss of control over one's life. However, these scores revert to pre-admission levels after 6 months. These findings may contribute to better-informed individual-level and policy decisions about potential NH entry and aging in place policies.
|Number of pages||17|
|Journal||Health Economics (United Kingdom)|
|Publication status||E-pub ahead of print - 4 Sept 2022|
This research uses non-public data available at Statistics Netherlands. Additionally, we thank the Community Health Services, Statistics Netherlands & National Institute for Public Health and the Environment for access to survey data from the Health Monitors. We are grateful to Bram Wouterse, Pilar García-Gómez, Job van Exel, Marianne Tenand, Richard Frank, Viola Angelini and participants at the Netspar Pension Workshop 2019, the EUHEA PhD workshop 2020, the Essen Mental Health Workshop 2021, KVS New Paper Sessions 2021 and the Health Foundation for comments on earlier versions of this paper. This study has been carried out with financial support from the Network for Studies on Pensions, Aging and Retirement. Grant name: Optimal saving and insurance for old age: The role of public-long term care insurance.