On the determinants of the willingness to pay for public long-term care insurance ::empirical evidence from OECD surveys

This study aims to better understand individuals’ willingness to pay (WTP) to finance long-term care (LTC) services through taxation or social contributions. Research on the topic is scarce and country-specific. We use data from the OECD’s 2020 and 2022 “Risks that Matter” surveys, covering 22 countries, to investigate the impact of individual and country-level characteristics on the WTP for social LTC insurance at both aggregate and country levels. We show that income levels, older age, being a woman, having left-leaning political views, and caregiving responsibilities consistently increase the likelihood of agreeing to pay for increased taxation or social contribution to better access LTC services. Additionally, the country’s spending on LTC services as a percentage of GDP and the respondents’ trust in their government significantly increase their WTP. These results show a generational, social, and political divide in attitudes toward public LTC funding across OECD countries, offering valuable insights for policymakers in organizing LTC systems.