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As an important policy initiative, the integrated reform of the elderly care service industry (IRECSI) seeks to improve China's eldercare market system. This change may affect the consumption behavior of older people. Using data from the China Health and Retirement Longitudinal Study (CHARLS) from 2011 to 2020, this study explored the effect of IRECSI on consumption behavior among older adults in China and its underlying mechanisms. The study found that the IRECSI can significantly enhance consumption among older adults. In examining the mechanism linking IRECSI and elderly consumption behavior, we found that the variety and quality of elderly care services, as well as older adults' economic capacity, mobility, and willingness to consume, mediate this relationship. Moreover, the IRECSI positively affects consumption among the more disadvantaged old population, as the beneficial effects were more prominent among those aged 70+, with low income, or those with disabilities. Our findings reveal the effects of IRECSI on the consumption behavior of older adults from a market-oriented perspective, while also providing practical evidence to help policymakers design strategies to stimulate consumption and boost well-being among older adults.
Su et al. (Tue,) studied this question.