Effects of long-term care insurance on women's time allocation: evidence from pilot regions in China

As population aging intensifies in China, the demand for long-term care continues to rise, posing challenges to the sustainability of the traditional family-based care model. As important providers of family care, women often face a trade-off between caregiving responsibilities and personal development. In this context, long-term care insurance (LTCI) may support family caregiving and affect women's time allocation.

Using data from the 2016 and 2018 waves of the China Family Panel Studies (CFPS), this study examines changes in women's time allocation associated with LTCI pilot policy exposure. The final analytical sample includes 11,475 female observations, with 1,426 in the treatment group and 10,049 in the control group. The study combines propensity score matching with a before-and-after comparison between pilot and non-pilot regions.

The study finds that LTCI pilot policy exposure is significantly associated with increased market labor time and leisure time and reduced household labor time among women. These associations vary across regions, age groups, and income groups. The mechanism analysis suggests that caregiving burden and upward financial support may serve as potential channels. Further analysis suggests that LTCI pilot policy exposure may be associated with improved intergenerational emotional bonds through increased leisure time.

This study provides empirical evidence for improving the LTCI system and enhancing women's well-being.