IDEAS home Printed from https://ideas.repec.org/a/tpr/restat/v106y2024i6p1477-1494.html
   My bibliography  Save this article

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

Author

Listed:
  • Krista Ruffini

    (Georgetown University)

Abstract

This 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.

Suggested Citation

  • Krista Ruffini, 2024. "Worker Earnings, Service Quality, and Firm Profitability: Evidence from Nursing Homes and Minimum Wage Reforms," The Review of Economics and Statistics, MIT Press, vol. 106(6), pages 1477-1494, November.
  • Handle: RePEc:tpr:restat:v:106:y:2024:i:6:p:1477-1494
    DOI: 10.1162/rest_a_01271
    as

    Download full text from publisher

    File URL: https://doi.org/10.1162/rest_a_01271
    Download Restriction: Access to PDF is restricted to subscribers.

    File URL: https://libkey.io/10.1162/rest_a_01271?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:106:y:2024:i:6:p:1477-1494. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: The MIT Press (email available below). General contact details of provider: https://direct.mit.edu/journals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.