The Impact of Welfare Facilities on Happiness of the Elderly: Evidence from Seoul, Korea

Across the world, there are growing concerns about how to care for an increasingly large elderly population. We explore how elderly welfare facilities influence seniors’ subjective well-being, focusing on the city of Seoul, Korea, using the 2005–2015 Seoul Survey data. Through pooled cross-sectional data analysis with time-specific and location-specific fixed-effects, we estimate the effect of the number of local welfare facilities on elderly subjective well-being. Our results show that elderly welfare facilities have a positive effect on elderly subjective well-being after controlling for endogeneity, but these facilities are more important for the more aged elderly and lower income elderly.