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Howes, C. (2002). The Impact of a Large Wage Increase on the Workforce Stability of IHSS Homecare Workers in San Francisco County. University of California Institute for Labor and Employment, and the University of California Center for Labor Research and Education, Berkeley.

Abstract

Abstract This study records the impact of the nearly doubling of wages for IHSS homecare workers in San Francisco County over a 52 month period.
This study is one of the very few large-scale empirical investigations of the effect of wages on labor market outcomes in any direct care industry, and possibly the only such study specifically addressing conditions in the homecare industry. The project is based on a unique database, which matches approximately 18,000 San Francisco County homecare workers in 26,115 unique matches to 15,500 service recipients during Nov. 1997 – Feb. 2002.

Principal conclusions:
- The number of IHSS workers increased 54% over the four-year study period.
- The number of consumers increased by 47% over the same period.
- The number of hours worked per provider increased significantly for non-family providers in some ethnic groups.
- The annual turnover rate of matches between consumer and provider fell by 6%; adjusted to eliminate the turnover of matches that may end for natural reasons, the annual "bad" turnover rate of matches fell 20%.
- The annual turnover rate of the workforce fell 17 percent, but adjusted to measure only "bad turnover," the rate fell by 30%.
- The proportion of consumers matched to a provider of their own ethnicity (which is a measure of the quality of match) rose 6%.
- The wage increase is estimated to have reduced the number of people living below the poverty line in San Francisco up to 15%.
- By 2001, the IHSS program was bringing in $114 million in income every year to San Francisco (compared to $37 million in 1997). Every dollar spent by the county brought an additional $13 in income from state and federal sources to very poor San Francisco communities.

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Three documents available on-line (PDF):\r\n\r\nThe Report\r\nTables\r\nFigures\r\n