Forschungskolloquium-Higher Wages, Service Quality, and Firm Profitability: Evidence from Nursing Homes and Minimum Wage Reforms
Wann
Dienstag, 15. Juni 2021
15:15 bis 16:45 Uhr
Wo
online
Veranstaltet von
Juniorprofessur für Bildungs- und Arbeitsökonomik
Vortragende Person/Vortragende Personen:
Krista Ruffini (Federal Reserve Bank of Minneapolis)
Higher Wages, Service Quality, and Firm Profitability: Evidence from Nursing Homes and Minimum Wage Reforms
Abstract: This paper examines whether higher earnings for frontline workers affect the quality of services consumers receive. I leverage wage increases in the statutory minimum wage, combined with worker, consumer, and rm outcomes in the nursing home sector. I find that higher minimum wages increase income and tenure for low-wage employees while improving consumer outcomes, measured by fewer inspection violations; lower rates of adverse, preventable health conditions; and lower resident mortality. Firms avoid lower profitability by attracting patients with a greater ability to pay and increasing prices for these consumers.