IDEAS home Printed from https://ideas.repec.org/a/bpj/bejeap/v10y2010i1n5.html
   My bibliography  Save this article

Causes of Caregiver Turnover and the Potential Effectiveness of Wage Subsidies for Solving the Long-Term Care Workforce 'Crisis'

Author

Listed:
  • Powers Elizabeth T

    (University of Illinois at Urbana-Champaign)

  • Powers Nicholas J

    (njpowers@yahoo.com)

Abstract

Detailed data on private providers of long-term community-based residential services for persons with developmental disabilities permit investigation of the causes of frontline worker turnover. The endogeneity of turnover with compensation variables is accounted for in the estimation using instrumental variables. Turnover is determined by resident characteristics, frontline-worker compensation, and establishment characteristics. The share of higher-need residents and agency size predict higher turnover, while compensation and non-profit status are associated with lower turnover. Our findings indicate that public policies to reduce turnover through compensation subsidization can be effective. Our preferred estimates suggest an approximate one-quarter increase in total compensation would cut turnover by one-third.

Suggested Citation

  • Powers Elizabeth T & Powers Nicholas J, 2010. "Causes of Caregiver Turnover and the Potential Effectiveness of Wage Subsidies for Solving the Long-Term Care Workforce 'Crisis'," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-30, January.
    • Handle: RePEc:bpj:bejeap:v:10:y:2010:i:1:n:5
    DOI: 10.2202/1935-1682.2277
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1935-1682.2277
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1935-1682.2277?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.

    References listed on IDEAS

    as
    1. Adams, Scott & Neumark, David, 2005. "The effects of living wage laws: Evidence from failed and derailed living wage campaigns," Journal of Urban Economics, Elsevier, vol. 58(2), pages 177-202, September.
    2. Richard B. Freeman, 2005. "What Do Unions Do?-- The 2004 M-Brane Stringtwister Edition," Journal of Labor Research, Transaction Publishers, vol. 26(4), pages 641-668, November.
    3. Gordon H. Cleveland & Douglas E. Hyatt, 2002. "Child care workers' wages: New evidence on returns to education, experience, job tenure and auspice," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(3), pages 575-597.
    4. Michael P. Murray, 2006. "Avoiding Invalid Instruments and Coping with Weak Instruments," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 111-132, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Reagan A. Baughman & Kristin E. Smith, 2012. "Labor Mobility Of The Direct Care Workforce: Implications For The Provision Of Long‐Term Care," Health Economics, John Wiley & Sons, Ltd., vol. 21(12), pages 1402-1415, December.
    2. Soonae Park & Byung-Yeon Kim & Wonchang Jang & Kyung-Min Nam, 2014. "Imperfect information and labor market bias against small and medium-sized enterprises: a Korean case," Small Business Economics, Springer, vol. 43(3), pages 725-741, October.
    3. Baughman Reagan, 2018. "Employment in Long-Term Care: The Role of Macroeconomic Conditions," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(4), pages 1-12, October.
    4. Shinya Sugawara, 2013. "An Interval Regression Analysis for Tenures of Japanese Elder Care Workers Using Matched Employer-Employee Data," CIRJE F-Series CIRJE-F-887, CIRJE, Faculty of Economics, University of Tokyo.
    5. Xiao-yuan Dong & Jin Feng & Yangyang Yu, 2014. "Relative Pay and its Underlying Determinants for Domestic Eldercare Workers in Urban China," Departmental Working Papers 2014-01, The University of Winnipeg, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barone, Guglielmo & Narciso, Gaia, 2015. "Organized crime and business subsidies: Where does the money go?," Journal of Urban Economics, Elsevier, vol. 86(C), pages 98-110.
    2. Blaine G Robbins, 2012. "A Blessing and a Curse? Political Institutions in the Growth and Decay of Generalized Trust: A Cross-National Panel Analysis, 1980–2009," PLOS ONE, Public Library of Science, vol. 7(4), pages 1-14, April.
    3. Sánchez-Valadez, Manuel, 2012. "Decisiones financieras, competencia en el mercado y desempeño de las empresas: Evidencia empírica para Iberoamérica/Financial Decisions, Market Competition and Firm Performance: Empirical Evidence for," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 30, pages 359(36)-359, Abril.
    4. Alessandro Gambini & Alberto Zazzaro, 2013. "Long-lasting bank relationships and growth of firms," Small Business Economics, Springer, vol. 40(4), pages 977-1007, May.
    5. Hartwell, Christopher A., 2014. "The impact of institutional volatility on financial volatility in transition economies : a GARCH family approach," BOFIT Discussion Papers 6/2014, Bank of Finland, Institute for Economies in Transition.
    6. Pulapre Balakrishnan & M Parameswaran, 2019. "Modeling the Dynamics of Inflation in India," Working Papers 16, Ashoka University, Department of Economics.
    7. Yang, Miles M. & Li, Tianchen & Wang, Yue, 2020. "What explains the degree of internationalization of early-stage entrepreneurial firms? A multilevel study on the joint effects of entrepreneurial self-efficacy, opportunity-motivated entrepreneurship,," Journal of World Business, Elsevier, vol. 55(6).
    8. Tanaka, Kiyoyasu & Hashiguchi, Yoshihiro, 2015. "Agglomeration effects of informal sector: evidence from Cambodia," IDE Discussion Papers 495, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    9. Miquel-Àngel Garcia-López & Ilias Pasidis & Elisabet Viladecans-Marsal, 2022. "Congestion in highways when tolls and railroads matter: evidence from European cities [The congestion relief benefit of public transit: evidence from Rome]," Journal of Economic Geography, Oxford University Press, vol. 22(5), pages 931-960.
    10. Doko Tchatoka, Firmin Sabro, 2012. "Specification Tests with Weak and Invalid Instruments," MPRA Paper 40185, University Library of Munich, Germany.
    11. Asadullah, M. Niaz & Xiao, Saizi, 2020. "The changing pattern of wage returns to education in post-reform China," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 137-148.
    12. Akachi, Yoko & Canning, David, 2015. "Inferring the economic standard of living and health from cohort height: Evidence from modern populations in developing countries," Economics & Human Biology, Elsevier, vol. 19(C), pages 114-128.
    13. Daouli, Joan & Demoussis, Michael & Giannakopoulos, Nicholas, 2009. "Sibling-sex composition and its effects on fertility and labor supply of Greek mothers," Economics Letters, Elsevier, vol. 102(3), pages 189-191, March.
    14. Richard Volpe & Edward C Jaenicke & Lauren Chenarides, 2018. "Store Formats, Market Structure, and Consumers’ Food Shopping Decisions," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 40(4), pages 672-694, December.
    15. Martin Nordin & Sören Höjgård, 2017. "An evaluation of extension services in Sweden," Agricultural Economics, International Association of Agricultural Economists, vol. 48(1), pages 51-60, January.
    16. Dutta, Nabamita & Kar, Saibal, 2018. "Relating rule of law and budgetary allocation for tourism: Does per capita income growth make a difference for Indian states?," Economic Modelling, Elsevier, vol. 71(C), pages 263-271.
    17. Subramanian Rangan & Metin Sengul, 2009. "Information technology and transnational integration: Theory and evidence on the evolution of the modern multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1496-1514, December.
    18. Nissim, Gadi & Simon, Tomer, 2021. "The future of labor unions in the age of automation and at the dawn of AI," Technology in Society, Elsevier, vol. 67(C).
    19. Vance, Colin & Frondel, Manuel, 2015. "From fuel taxation to efficiency standards: A wrong turn in European climate protection?," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113171, Verein für Socialpolitik / German Economic Association.
    20. Chris SAKELLARIOU & Fang ZHENG, 2014. "Returns to Schooling for Urban Residents and Migrants in China: New IV Estimates and a Comprehensive Investigation," Economic Growth Centre Working Paper Series 1407, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.

    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:bpj:bejeap:v:10:y:2010:i:1:n:5. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    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.