Résumé

Cost-sharing measures between users and the State are a way to reduce public budgets allocated to LTC financing. However, they could also provide incentives to the nontake-up of LTC public benefits. Our paper investigates the effect of two specific cost sharing measures, estate recovery and compulsory financial assistance on the non-take up decision. It studies theoretically and empirically how these two measures affect the decision not to take up a French public benefit entitled Aide Sociale à l’Hébergement (ASH), which is a public subsidy covering nursing home costs for low-income individuals. Our theoretical findings show that the main drivers of the non-take-up decision are low nursing home costs, the amount of costsharing, the individual’s wealth and family composition. Our empirical results confirm the theoretical findings.

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