Sugawara, Shinya and Jiro Nakamura

This study evaluates the Japanese Long-Term Care Insurance(LTCI) a decade after its launch, focusing on the effects of its 2006 amendment. The radical program led to the emergence of markets for various care services such as home care, daycare and temporary institutional care besides permanent institutional care, which comprises only a formal care sector in many developed countries. We analyze the labor market behavior of women who face requirement for elderly care in their household, under the availability of the various formal care services. Our empirical analysis shows that the 2006 amendment reduced the negative impacts of care requirement both on the rate of female labor force participation and their working hours. However, our results also indicate that regular workers are more likely to utilize formal care, while many non-regular workers provide informal care by themselves.