Abstract
The first microeconometric analysis of home care carried out for all of Austria indicates the health status as a primary factor for
choosing the type of care, as well as a complementary relationship between informal and formal care. Projections for public
spending on long-term care underline how demographic trends will impact on expected cost increases. By 2025 public expenditure for long-term nursing and care services will already be higher by about 50 percent in real terms than in 2015, and long-term
care allowance will rise by about 12 percent. The growth will become explosive only after 2025, when baby boomers enter the
very old age cohorts. Between 2025 and 2050 this will triple spending on long-term care services. Through direct and indirect economic interlinkages, expenditures on long-term care services generate tax revenues and social insurance contributions of about
70 percent of the expenditures and generated employment for about 115,000 persons in 2015, as calculated by this first analysis
of the macroeconomic effects of the Austrian long-term care sector.
choosing the type of care, as well as a complementary relationship between informal and formal care. Projections for public
spending on long-term care underline how demographic trends will impact on expected cost increases. By 2025 public expenditure for long-term nursing and care services will already be higher by about 50 percent in real terms than in 2015, and long-term
care allowance will rise by about 12 percent. The growth will become explosive only after 2025, when baby boomers enter the
very old age cohorts. Between 2025 and 2050 this will triple spending on long-term care services. Through direct and indirect economic interlinkages, expenditures on long-term care services generate tax revenues and social insurance contributions of about
70 percent of the expenditures and generated employment for about 115,000 persons in 2015, as calculated by this first analysis
of the macroeconomic effects of the Austrian long-term care sector.
| Translated title of the contribution | Austria 2025 – Challenges and Macroeconomic Effects of Long-term Care Provision |
|---|---|
| Original language | German |
| Title of host publication | WIFO-Monatsberichte |
| Publisher | Österreichisches Institut für Wirtschaftsforschung |
| Pages | 639-648 |
| Number of pages | 10 |
| ISBN (Electronic) | ISSN 0029-9898 |
| Publication status | Published - 2017 |
| Externally published | Yes |
Publication series
| Name | WIFO Monatsberichte |
|---|---|
| Publisher | Österreichisches Institut für Wirtschaftsforschung |
| Number | 8 |
| Volume | 90 |
| ISSN (Electronic) | 0029-9898 |
IMC Research Focuses
- Health management and policy
ÖFOS 2012 - Austrian Fields of Study
- 303010 Health economics
- 502053 Economics
