Study On The Mechanism Of The Impact Of Long Term Care Insurance On Labor Employment

The long-term care insurance policy was given the basic goal of providing care services for the disabled,relieving the pressure of family care,and guaranteeing the normal participation of the care recipient’s family in the workforce from the very beginning of its formulation.In the context of an aging population and a waning demographic dividend,exploring the mechanism of the impact of long-term care insurance policy on labor and employment is beneficial to both the improvement of China’s protection system and the construction of China’s labor market and future long-term economic growth.Based on the panel data of 13 pilot cities and 39 non-pilot cities from 2010 to 2020,this thesis quantitatively assesses the mechanism of the impact of long-term care insurance policies on labor employment using a Difference-in-differences method with the help of a quasi-natural experiment.The study found that long-term care insurance policies have a significant positive contribution to labor employment through the release of substitution effects.In addition,the impact of long-term care insurance policy on labor employment is characterized by significant spatial heterogeneity and individual heterogeneity.In terms of spatial heterogeneity,the eastern and central pilots have a positive promotion effect on labor employment,while it inhibits labor employment in the western region,and the promotion effect in the eastern pilot cities is about three times higher than that in the central region;the degree of promotion of labor employment is greatest in large cities,followed by megacities and medium cities,while there is no effect on megacities.In terms of individual heterogeneity,long-term care insurance has a positive contribution to both male and female workers,but the substitution effect is more pronounced for women;it increases labor employment in the tertiary sector to a greater extent than in the primary and secondary sectors,and has a negative inhibitory effect on the primary sector,with no significant effect on the secondary sector.The further mechanism of action test fully proves that long-term care insurance policy increases individuals’ willingness to work by enhancing their willingness to work and reducing the probability of early retirement,by the way,the substitution effect of long-term care insurance policy in the pilot cities is greater than the income effect and can have a positive promotion effect on labor.The conclusion indicates that long-term care insurance policy is expected to be a potential policy tool with the dual functions of active aging and preserving employment and promoting people’s livelihood.The article provides a policy reference for further improving the long-term care insurance system,helping to promote it nationwide,creating a long-term mechanism to promote labor and employment,and stimulating endogenous power.