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Internal migration patterns are shifting rapidly in developing nations. A recent study utilizing data from the China Health and Retirement Longitudinal Study (CHARLS) highlights how Long-Term Care Insurance (LTCI) influences these trends. Specifically, the introduction of LTCI schemes encourages urban-to-urban migration among the children of older adults. This shift occurs because the insurance reduces the immediate caregiving burden on the younger generation.
Researchers applied a staggered difference-in-differences (DID) approach to analyze the data. They found that the facilitative effect is strongest among adult children of parents over 80 years of age. Additionally, children of non-disabled older adults and those in multi-child families show higher migration rates. Consequently, LTCI allows these individuals to pursue better career opportunities in other urban centers without neglecting their parents' welfare.
The study also explores the mechanisms behind this migration. LTCI appears to strengthen parent-child ties through increased financial support. Moreover, it boosts the wage returns of children by enabling them to relocate to economically vibrant areas. Interestingly, LTCI schemes that adopt fixed payment models or exclude home care payments demonstrate superior results in promoting mobility. Therefore, policy design plays a critical role in the broader socio-economic impact of social security systems.
LTCI encourages adult children to move between urban areas by alleviating the physical and emotional burden of caring for aging parents at home.
The study suggests that children of parents over 80 and those from families with multiple children experience the greatest boost in geographical mobility.
Disclaimer: This content is for informational and educational purposes only. It does not constitute professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or other qualified health provider with any questions you may have regarding a medical condition. Refer to the latest local and national guidelines for clinical practice.
References
Shangguan Y et al. Does Long-Term Care Insurance Encourage Urban-To-Urban Migration in China? J Aging Soc Policy. 2026 Mar 14. doi: 10.1080/08959420.2026.2643652. PMID: 41830430.
Wang J, et al. Caregiving responsibility and adult children's migration: evidence from public long-term care insurance in China. Applied Economics. 2025 Dec 01. doi: 10.1080/00036846.2025.2596282.
Liu H, et al. Unlocking intergenerational support: The impact of long-term care insurance on elderly family dynamics. PMC. 2025 Nov 21.
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A study using CHARLS data reveals that Long-Term Care Insurance (LTCI) significantly encourages urban-to-urban migration by easing the eldercare burden....
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