Empirical Study on Incidence of Long-term Care Insurance

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Other Title
  • 介護保険制度の帰着分析
  • カイゴ ホケン セイド ノ キチャク ブンセキ

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Abstract

One of the reasons for the few empirical studies on incidence of payroll tax in Japan is that there had hardly been a change in the social insurance system to enable an appropriate natural experiment. Long-term care insurance introduced in 2000, however, provides us with an opportunity to analyze who bears the burden of social insurance. Since long-term care insurance levied a payroll tax only on employees aged over forty, it allows us to investigate the negative impact of employer's contribution on earnings, by comparing the wage growth of over-forty age group with that of the under-forty age group around year 2000. Based on differences-in-differences estimates using the Basic Survey on Wage Structure, we found the decrease in the wage after 2000 merely for male employees aged over forty, which indicates that male workers partially bear "the employer's burden." Although a serial correlation problem does not disturb our estimates, a couple of robustness checks show they might have been caused by factors other than long-term care insurance.

Journal

  • Iryo To Shakai

    Iryo To Shakai 16 (3), 285-301, 2006

    The Health Care Science Institute

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