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The Impact of a Large Wage Increase on the Workforce Stability of IHSS Home Care Workers in San Francisco County

November 1, 2002

This study is a large-scale empirical investigation of the effect of wages on labor market outcomes in the home care industry. It records the impact of doubling wages for home care workers in San Francisco County over a 52 month period. The project is based on a database that matches home care workers to service recipients. Turnover decreased, consumer-worker ethnicity matching increased, and number of people living below the poverty line in the County decreased.

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Key Takeaways

An increase in compensation corresponded with a significant drop in the turnover rate.
Every county dollar spent brought $13 from state and federal sources to low-income San Francisco communities.
There was a 54% increase in the number of workers over the four-year period of the study.

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