Who wants to pay more taxes for better long-term care services: evidence from OECD surveys.

Abstract

Background: This study examines the factors influencing individuals' willingness to pay higher taxes to support long-term care (LTC) services, a pressing issue as aging populations drive rising LTC demand and public spending.

Methods: We use data from the 2020 and 2022 waves of the OECD's "Risk that Matter" survey, a cross-national survey examining people's perceptions of the social and economic risks they face. We employ generalized linear mixed-effects models configured as logistic regression models, including country-level random intercepts and country-level covariates. We also conduct standard logit regressions for individual countries to analyze local nuances further.

Results: The findings reveal that higher income, older age, female gender, left-leaning political orientation, and caregiving responsibilities significantly increase the likelihood of willingness to pay for improved LTC services. At the country level, greater LTC spending as a share of GDP, higher trust in government, and policies offering cash benefits to carers also play a significant role.

Conclusions: Overall, the results indicate strong support for additional LTC funding among sizeable demographic groups, especially older respondents and those in higher-income groups. At the same time, political orientation and certain socio-demographic characteristics are associated with differences in support. These findings are relevant for policymakers considering reforms to improve the provision of LTC services.