Can better elderly care lead to a better quality of life? Evidence from China’s government purchasing of elderly care services policy

We employed a difference-in-differences (DID) model to examine the impact of government purchasing policy for elderly care services on the quality of life of functionally limited middle-aged and elderly individuals. Our analysis reveals a significant enhancement in life satisfaction among this demographic, primarily attributed to improved care needs met and increased companionship from their children. We also observed a more pronounced impact among individuals without spouses and those residing in rural areas. This research provides valuable insights for policymakers seeking to strengthen elderly care provision and promote the well-being of middle-aged and elderly individuals.