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Living Wages and Retention of Homecare Workers in San Francisco

Journal Article
December 1, 2004

This study records the impact of wage increases on retention of San Francisco home care workers. The author finds that the annual retention rate of new providers rose from 39% to 74% following significant wage and benefit increases and that a $1 increase in the wage rate from the national average would increase retention by 17 percentage points. Further, adding health insurance increases the retention rate by 21 percentage points.

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Key Takeaways

Nearly doubling wages and providing health insurance increased retention from 39% to 74%.
A $1 increase (from $8 to $9) would result in a 17% increase in retention.
Providing health benefits increases retention by 21%.

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