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Informal employment and the earnings of home‐based home care workers in the United States

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  • Jeounghee Kim

Abstract

Informal employment continues to exist in parallel with formal employment among the US home‐based home care workers and undermines the workers' economic security. This study examines the extent to which the earnings of the US home‐based home care workers are affected by informal employment arrangements and state labour policies designed to benefit low‐wage home care workers. Using a sample of 1,318 home‐based home care workers from the 2017 and 2018 Annual Social and Economic Supplement of the Current Population Survey, this study found that (i) informally employed home‐based home care workers had a 9% reduction in annual earnings and that (ii) their earnings were not improved by generous state minimum wages and Domestic Workers' Bill of Rights while the earnings of agency employees were. The findings highlight the importance of strong enforcement of labour standards for informally employed home care workers in the United States.

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  • Jeounghee Kim, 2020. "Informal employment and the earnings of home‐based home care workers in the United States," Industrial Relations Journal, Wiley Blackwell, vol. 51(4), pages 283-300, July.
    • Handle: RePEc:bla:indrel:v:51:y:2020:i:4:p:283-300
    DOI: 10.1111/irj.12299
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    References listed on IDEAS

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    1. James J. Heckman & Vytlacil, Edward J., 2007. "Econometric Evaluation of Social Programs, Part II: Using the Marginal Treatment Effect to Organize Alternative Econometric Estimators to Evaluate Social Programs, and to Forecast their Effects in New," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 71, Elsevier.
    2. T. H. Gindling & Nadwa Mossaad & David Newhouse, 2016. "How Large are Earnings Penalties for Self-Employed and Informal Wage Workers?," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-39, December.
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    Cited by:

    1. Jeounghee Kim, 2020. "Occupational Credentials and Job Qualities of Direct Care Workers: Implications for Labor Shortages," Journal of Labor Research, Springer, vol. 41(4), pages 403-420, December.

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