Decades of administrative data and quasi-experimental variations on the introduction of general long-term care insurance in Germany in 1995 are used to examine whether expanding health insurance can stimulate the local economy. The introduction of long-term care insurance has not only led to considerable growth in the target sector of long-term care insurance, but also to a decline in unemployment and an increase in labor force participation.
IAB-Discussion Paper 3/2025: Health Insurance as Economic Stimulus? Evidence from Long-Term Care Jobs