Impact of the Industrialization of Older Adult Care Services on Older Individuals’ Physical and Mental Health: Evidence from China’s Quasi-Natural Experiment

• Published in: Journal of multidisciplinary healthcare 2023-10, Vol.16, p.3017-3033
• Main Authors: He, Yang, Ouyang, Wenjing, Li, Zhenzhen, Wei, Baojian
• Format: Article
• Language: English
• Subjects: Analysis; chinese longitudinal healthy longevity survey; Fiscal policy; Health aspects; healthy aging; difference-in-differences; industrialization; Long-term care of the sick; market-driven fiscal policy; Mental health; older adult care; Original Research; physical and mental health
• ISSN: 1178-2390; 1178-2390
• DOI: 10.2147/JMDH.S426710

Purpose: Given the increasing longevity of the population, the consolidation of familial structures, and the scarcity of economic resources required to sustain an aging society, the Chinese government faces a complex and urgent challenge in effectively addressing the growing needs of older adults and establishing a long-term care services system that is both sustainable and equitable. Patients and Methods: This study harnesses the comprehensive CLHLS data from 2011 to 2018 and utilizes the "Pilot Industrialization of Old-Age Service in a Market-Oriented Way" policy as a quasi-natural experiment. Employing the Difference-in-Differences (DID) method, our study aims to evaluate the impact of industrializing older adult care services on the physical and mental health outcomes of older adults in China. Results: The findings strongly indicate that the government's adoption of a market-driven fiscal approach within its policies, aimed at attracting social capital and fostering the industrialization of older adult care services, positively influences the physical and mental well-being of the aged population. Furthermore, through heterogeneity analysis, it becomes evident that the health promotion effect is particularly pronounced among older individuals living without a spouse, lacking family care from children or grandchildren, or residing in financially underdeveloped regions. Conclusion: In summary, these results underscore the potential efficacy of employing financial policy instruments to facilitate the industrialization of older adult care services, thereby advancing the promotion of a society characterized by healthy aging and ensuring equitable health outcomes for older people. Keywords: industrialization, older adult care, market-driven fiscal policy, physical and mental health, healthy aging, difference-indifferences, Chinese longitudinal healthy longevity survey