Study on the influence of long-term care insurance on life satisfaction of the elderly—— Empirical analysis based on CHARLS data from 2011 to 2020

As China's population ages, the number of elderly people is increasing sharply, and mental health issues among the elderly are becoming more prominent. This paper uses data from five waves of the Chinese Health and Retirement Longitudinal Study (CHARLS) from 2011 to 2020, employing a progressive difference-in-differences model to investigate the impact and mechanisms of long-term care insurance on the life satisfaction of the elderly. The baseline regression results show that long-term care insurance has a more significant effect on the life satisfaction of men, rural residents, those without pension insurance, those with no social activities, older individuals, and low-income seniors. Through mediation mechanism research, it is found that long-term care insurance significantly influences the life satisfaction of the elderly through pathways such as physical health, mental health, and satisfaction with children. Notably, long-term care insurance does not significantly improve emotional connections between the elderly and their children, nor does it significantly enhance their life satisfaction. Based on the pilot experience of long-term care insurance, suggestions are made to improve top-level design, gradually expand the scope of pilots and coverage of insured individuals, establish a precise identification mechanism for nursing assistance, increase subsidies for disadvantaged groups, strengthen grassroots public health facilities, and promote equal access to basic public services.