Working Paper: NBER ID: w31889
Authors: Mette Grätz; Bent Jesper Christensen; Nabanita Datta Gupta
Abstract: The population is aging in Denmark, as in many other countries, due to increasing life expectancy and a low total fertility rate. This potentially puts the Danish welfare state under pressure. This paper discusses the demographic and socioeconomic situation of the elderly in Denmark, focusing on the health status and financial situation of the elderly, and the provision of long-term care (LTC). We rely on a combination of survey data, mainly from the Survey of Health and Retirement in Europe (SHARE), and high-quality register data covering the entire Danish population. We find that a large fraction of the elderly is in good health, but that those in the older age group, 85+, face considerably more functional limitations in daily living. One in three of the elderly receives some form of long-term care, and more than half the 85+ group. The paper further identifies a number of current challenges regarding organization of the long-term care sector, including recruitment of personnel for health care and LTC. Finally, the paper sheds light on the extent of informal care provided by family and friends. While informal care is offered voluntarily and is generally unpaid, it represents a substantial opportunity cost to society.
Keywords: long-term care; elderly; Denmark; health status; socioeconomic situation
JEL Codes: H51; I1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| increase in life expectancy and decline in fertility rates (J11) | increase in elderly population (J14) |
| increase in elderly population (J14) | higher demand for long-term care services (J20) |
| age (85) (J14) | more functional limitations than age (65) (J14) |
| higher income and wealth (D31) | better health outcomes and fewer functional limitations (I14) |
| increase in elderly population (J14) | recruitment challenges in LTC sector (J23) |
| informal care (J46) | opportunity cost to society (D61) |
| financial situation of elderly (D14) | access to care (I14) |