Long‑Term Care Insurance and the Shift of City Residents in China

In recent years, more people are moving from one city to another inside China.

Researchers used data from a large national survey that tracks health and aging. They applied a statistical method called staggered difference‑in‑differences to see how the introduction of long‑term care insurance affects these moves.

The analysis shows that the new insurance policy makes it more likely for children of older adults to relocate between cities.

Key Findings

• Target Group: The effect is strongest when the parent is over 80 years old, does not have a disability, or when there are other siblings in the family.
• Insurance Design: Plans that do not cover home care and that pay a fixed amount each month seem to work best.
• Family Impact: These policies also strengthen family ties, increase the money that children send home, and raise the wages that the children earn.

Implications

The study offers fresh insight into how social programs can shape internal migration patterns in growing economies.