In this paper, firstly, I try to analyze the decision-making process selecting in home care or care in welfare facilities. The utilized data comes from the Survey of National Living Standard in 1995. Second, I analyze the labor supply of those who take care at home. The utilized data are the estimated results of the first step and the Survey of National Living Standard in 1986,1989,1992 and 1995.
As a result, with respect to the choice of the care in home, the higher the ability of care in the family is, the higher the probability of choosing care in home is. Furthermore, the greater the supply of welfare facilities is, the higher the probability of choosing welfare facility care. This results show that the supply restriction of welfare facilities and the local governments rationing of them according to the ability of care in family. Then, with respect to the labor supply of those who take care at home, the home-helper restrict the labor supply, and day-service, short-stay encourage a greater labor supply. The estimation results imply that if the policy of welfare for elders doubles, the labor supply of those who take care in home would increase by 16 percent.