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The effect of long-term care insurance on labor force participation among informal caregivers:

Evidence from China

Liangwen Zhang, Jinghong Dong, Sicheng Li, Ya Fang

13.2.2026

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Summary

This publication examines how the introduction of Long-Term Care Insurance (LTCI) in China affects the labour force participation of informal caregivers. Using longitudinal survey data and a staggered difference-in-difference approach, the study finds that LTCI reduces the time burden associated with unpaid caregiving, enabling caregivers to participate more actively in the labour market, particularly in non-agricultural employment. The effects are more pronounced among women, married individuals, those with lower levels of education, and healthier caregivers. The findings highlight how formal care policies can alleviate family caregiving pressures and support greater economic participation.

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