A panel multinomial logit analysis of elderly living arrangements: Evidence from aging in Manitoba longitudinal data, Canada

• Published in: Social science & medicine (1982) Vol. 65; no. 12; pp. 2539 - 2552
• Main Authors: Sarma, Sisira, Simpson, Wayne
• Format: Journal Article
• Language: English
• Published: Oxford Elsevier Ltd 01.12.2007; Elsevier; Pergamon Press Inc
• Series: Social Science & Medicine
• Subjects: Age Factors; Aged; Aged, 80 and over; Aging; Biological and medical sciences; Canada; Cohort Studies; Decision making models; Demography; Elderly; Elderly people; Endogenous; Female; Frail Elderly - statistics & numerical data; Geriatric Assessment - statistics & numerical data; Health services; Health status; Home Care Services - utilization; Home health care; Home ownership; Homes for the Aged - utilization; Humans; Living arrangement; Living arrangement Panel multinomial logit Elderly Long-term care Canada; Living arrangements; Living conditions; Logistic Models; Logit analysis; Long Term Care; Long-Term Care - utilization; Longitudinal studies; Male; Manitoba; Medical sciences; Miscellaneous; Nursing homes; Nursing Homes - utilization; Older people; Ownership; Ownership - statistics & numerical data; Panel data; Panel multinomial logit; Probability; Public health. Hygiene; Public health. Hygiene-occupational medicine; Random effects; Residence Characteristics - statistics & numerical data; Sociodemographics; Socioeconomic factors; Studies; Utilization Review - statistics & numerical data; Canada; Manitoba; North America; America; Manitoba Canada; Canada, Manitoba; Canada; Living arrangement; Panel multinomial logit; Elderly; Long-term care; Human; Senescence; Follow up study; Ageing; Social medicine; Public health; Long term care
• ISSN: 0277-9536; 1873-5347
• DOI: 10.1016/j.socscimed.2007.07.012

Utilizing a unique longitudinal survey linked with home care use data, this paper analyzes the determinants of elderly living arrangements in Manitoba, Canada using a random effects multinomial logit model that accounts for unobserved individual heterogeneity. Because current home ownership is potentially endogenous in a living arrangements choice model, we use prior home ownership as an instrument. We also use prior home care use as an instrument for home care and use a random coefficient framework to account for unobserved health status. After controlling for relevant socio-demographic factors and accounting for unobserved individual heterogeneity, we find that home care and home ownership reduce the probability of living in a nursing home. Consistent with previous studies, we find that age is a strong predictor of nursing home entry. We also find that married people, those who have lived longer in the same community, and those who are healthy are more likely to live independently and less likely to be institutionalized or to cohabit with individuals other than their spouse.