Federal minimum wage expansion to homecare workers: Employment and income effects

Ngoc Dao

Labour Economics, 2024, vol. 87, issue C

Abstract: The rapid growth of the home care industry coincides with increases in the proportion of the population over 65 years of age and more likely to need assistance with basic daily activities due to illness or disability. Yet, the growth in home care use has been accompanied by concerns about the quality of the care provided. Higher wages and better legal protection might improve the quality of home health care services. This study examines the 2013 Home Care Rule promulgated by the Department of Labor, which added home care workers to the groups covered under the federal minimum wage with minimum hourly and overtime rates. The results show large effects (7–9 %) on part-time employment increase, small effects on work hour reduction (by 2–4 %), and non-negative effect on overall employment level following the expansion. Despite the decline in hours worked, there is no negative impact on earnings among homecare workers.

Keywords: Minimum wage expansion; Homecare workers; Employment effects; Income effects (search for similar items in EconPapers)
JEL-codes: I1 I38 J2 J3 J38 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927537124000071
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:87:y:2024:i:c:s0927537124000071

DOI: 10.1016/j.labeco.2024.102511

Access Statistics for this article

Labour Economics is currently edited by A. Ichino

More articles in Labour Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().