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

• 成果类型: Article
• 署名作者: Ruffini, Krista
• 署名单位: Georgetown University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_01271
• 发表日期: 2024-11
• 页码: 1477-1494
• 关键词: health-care evidence; staffing standards; panel-data; of-care; LABOR; EMPLOYMENT; IMPACT; PRODUCTIVITY; increases; mortality

摘要

paper examines whether higher earnings for frontline workers affects the quality of employees' output. I leverage increases in the statutory minimum wage, combined with worker, consumer, and firm outcomes in the nursing home sector. I find that higher minimum wages increase income and retention among low-wage employees and improve consumer outcomes, measured by fewer inspection violations; lower rates of adverse, preventable health conditions; and lower resident mortality. Firms maintain profitability by attracting consumers with a greater ability to pay and increasing prices for these individuals.