{"id":53025,"date":"2023-12-01T18:03:10","date_gmt":"2023-12-01T17:03:10","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/the-economic-impact-of-long-term-care-services\/"},"modified":"2024-11-07T06:05:27","modified_gmt":"2024-11-07T05:05:27","slug":"the-economic-impact-of-long-term-care-services","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/53025\/","title":{"rendered":"The Economic Impact of Long-term Care Services"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-53025","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"Projections show sharp increases in public spending on long-term care services across Europe. However, a purely cost based focus on long-term care services is economically misleading. Private and public expenditure on long-term care services directly and indirectly generate income in the form of salaries, taxes and social security contributions. The aim of this paper is to quantify the economic impact and multipliers of long-term care services for the first time. Based on an econometric regional input-output model for Austria, we estimate the direct, indirect and induced effects of public and private expenditures on value added, employment, taxes and social security contributions. According to our results, each Euro spent on long-term care services is associated with domestic value added of 1.7 \u20ac as well as 0.70 \u20ac in taxes and social security contributions. The economic multipliers of the long-term care services are comparatively high due to the high share of wages and salaries in direct expenditure and the associated high direct value added. Public expenditure on professional care services should therefore not be regarded merely as a cost factor in the public budget. Rather, this rapidly growing economic sector is also an increasingly important economic factor in a time of ageing societies.","onlinedate":"2019-04-16 12:00:00","lang":"English","publication_series":"","publication_date":"20190401","publication_date_year":"","publication_date_full":false,"publication_num_pages":"20","keywords":"[]","jelcodes":"[]","related_publications":"[]","pdf":377061,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"580","journal":"WIFO Working Papers","publisher":"","invisible":false,"external":false,"embargo_date":"2019-04-16 12:00:00","types":[44410],"research_groups":[3481,3510],"collaboration":"","persons":[3879,4401,3724],"persons_data":"[{\"personId\":3879,\"personName\":\"Gerhard Streicher\",\"organisationNames\":[]},{\"personId\":4401,\"personName\":\"Ulrike Famira-M\u00fchlberger\",\"organisationNames\":[]},{\"personId\":3724,\"personName\":\"Matthias Firgo\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[41531],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Streicher, G.<\\\/span><span>, Famira-M\u00fchlberger, U.<\\\/span><span>, &amp; Firgo, M.<\\\/span> (2019). <span>The Economic Impact of Long-term Care Services<\\\/span>. <span><em>WIFO Working Papers<\\\/em><\\\/span>, (580). <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/61734\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/61734<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Streicher G<\\\/span><span>, Famira-M\u00fchlberger U<\\\/span><span>, Firgo M<\\\/span>. <span class=\\\"title\\\"><span>The Economic Impact of Long-term Care Services<\\\/span><\\\/span>. <span>WIFO Working Papers<\\\/span>. 2019 Apr;(580).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{231b7d72bfd648e38d6abd42855b08ef,<\\\/div><div>  title    = \\\"The Economic Impact of Long-term Care Services\\\",<\\\/div><div>  abstract = \\\"Projections show sharp increases in public spending on long-term care services across Europe. However, a purely cost based focus on long-term care services is economically misleading. Private and public expenditure on long-term care services directly and indirectly generate income in the form of salaries, taxes and social security contributions. The aim of this paper is to quantify the economic impact and multipliers of long-term care services for the first time. Based on an econometric regional input-output model for Austria, we estimate the direct, indirect and induced effects of public and private expenditures on value added, employment, taxes and social security contributions. According to our results, each Euro spent on long-term care services is associated with domestic value added of 1.7 \u20ac as well as 0.70 \u20ac in taxes and social security contributions. The economic multipliers of the long-term care services are comparatively high due to the high share of wages and salaries in direct expenditure and the associated high direct value added. Public expenditure on professional care services should therefore not be regarded merely as a cost factor in the public budget. Rather, this rapidly growing economic sector is also an increasingly important economic factor in a time of ageing societies.\\\",<\\\/div><div>  keywords = \\\"Long-term care services, input-output model, returns to public expenditures\\\",<\\\/div><div>  author   = \\\"Gerhard Streicher and Ulrike Famira-M{\\\\\\\"u}hlberger and Matthias Firgo\\\",<\\\/div><div>  note     = \\\"The Economic Impact of Long-term Care Services\\\",<\\\/div><div>  year     = \\\"2019\\\",<\\\/div><div>  month    = apr,<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Working Papers\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - The Economic Impact of Long-term Care Services<\\\/p><p>AU  - Streicher, Gerhard<\\\/p><p>AU  - Famira-M\u00fchlberger, Ulrike<\\\/p><p>AU  - Firgo, Matthias<\\\/p><p>N1  - The Economic Impact of Long-term Care Services<\\\/p><p>PY  - 2019\\\/4<\\\/p><p>Y1  - 2019\\\/4<\\\/p><p>N2  - Projections show sharp increases in public spending on long-term care services across Europe. However, a purely cost based focus on long-term care services is economically misleading. Private and public expenditure on long-term care services directly and indirectly generate income in the form of salaries, taxes and social security contributions. The aim of this paper is to quantify the economic impact and multipliers of long-term care services for the first time. Based on an econometric regional input-output model for Austria, we estimate the direct, indirect and induced effects of public and private expenditures on value added, employment, taxes and social security contributions. According to our results, each Euro spent on long-term care services is associated with domestic value added of 1.7 \u20ac as well as 0.70 \u20ac in taxes and social security contributions. The economic multipliers of the long-term care services are comparatively high due to the high share of wages and salaries in direct expenditure and the associated high direct value added. Public expenditure on professional care services should therefore not be regarded merely as a cost factor in the public budget. Rather, this rapidly growing economic sector is also an increasingly important economic factor in a time of ageing societies.<\\\/p><p>AB  - Projections show sharp increases in public spending on long-term care services across Europe. However, a purely cost based focus on long-term care services is economically misleading. Private and public expenditure on long-term care services directly and indirectly generate income in the form of salaries, taxes and social security contributions. The aim of this paper is to quantify the economic impact and multipliers of long-term care services for the first time. Based on an econometric regional input-output model for Austria, we estimate the direct, indirect and induced effects of public and private expenditures on value added, employment, taxes and social security contributions. According to our results, each Euro spent on long-term care services is associated with domestic value added of 1.7 \u20ac as well as 0.70 \u20ac in taxes and social security contributions. The economic multipliers of the long-term care services are comparatively high due to the high share of wages and salaries in direct expenditure and the associated high direct value added. Public expenditure on professional care services should therefore not be regarded merely as a cost factor in the public budget. Rather, this rapidly growing economic sector is also an increasingly important economic factor in a time of ageing societies.<\\\/p><p>KW  - Long-term care services<\\\/p><p>KW  -  input-output model<\\\/p><p>KW  -  returns to public expenditures<\\\/p><p>M3  - WIFO series<\\\/p><p>JO  - WIFO Working Papers<\\\/p><p>JF  - WIFO Working Papers<\\\/p><p>ER  - <\\\/p><\\\/div>\"}","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Economic Impact of Long-term Care Services - WIFO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wifo.ac.at\/en\/publication\/53025\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Economic Impact of Long-term Care Services\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.wifo.ac.at\/en\/publication\/53025\/\" \/>\n<meta property=\"og:site_name\" content=\"WIFO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/WIFOat\/\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-07T05:05:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO-Gebaeude-FotoAlexanderMueller-www.alexandermueller.at-IMG_6326-Bearbeitet-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@WIFOat\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/53025\\\/\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/53025\\\/\",\"name\":\"The Economic Impact of Long-term Care Services - 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