Spillover effect of Japanese long-term care insurance as an employment promotion policy for family caregivers

Rong Fu, Haruko Noguchi, Akira Kawamura, Hideto Takahashi, Nanako Tamiya

Research output: Contribution to journalArticle

2 Citations (Scopus)


We evaluate a spillover effect of the Japanese public long-term care insurance (LTCI) as a policy to stimulate family caregivers’ labor force participation. Using nationally representative data from 1995 to 2013, we apply difference-in-difference propensity score matching to investigate the spillover effect in two periods: before and after the introduction of the LTCI in 2000 and before and after its major amendment in 2006. Our results show that the LTCI introduction has significant and positive spillover effects on family caregivers’ labor force participation and the effects vary by gender and age. In contrast, the LTCI amendment is found to have generally negative spillover effects on their labor force participation. We draw attention to these spillover effects, as expanding labor market supply to sustain the economy would be a priority for Japan and other rapidly aging countries in the coming decades.

Original languageEnglish
Pages (from-to)103-112
Number of pages10
JournalJournal of Health Economics
Publication statusPublished - 2017 Dec 1



  • Difference-in-difference
  • Labor force participation
  • Long-term care insurance
  • Propensity score matching
  • Spillover effect

ASJC Scopus subject areas

  • Health Policy
  • Public Health, Environmental and Occupational Health

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