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Worker Earnings, Service Quality, and Firm Profitability: Evidence from Nursing Homes and Minimum Wage Reforms

Journal Article Wages & Benefits
November 15, 2022

This article looks at how minimum wage hikes would economically impact nursing homes and produce better patient outcomes. Higher minimum wages increase employees’ incomes and lead to improved patient outcomes. To view the original source, click here.

Key Takeaways

An increase in minimum wage decreases turnover of nursing assistants in California.
Higher wages reduce "quality of care" violations in nursing homes, mostly through the mechanism of reducing smaller quality of care infractions.
Higher minimum wages reduce mortality among nursing home residents, particularly for those who are older.

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