The Effects of Increasing State Minimum Wage on Family and Paid Caregiving

Abstract

Older adults may receive either or a combination of unpaid family/friend and paid caregiving. The consumption of family/friend and paid caregiving may be sensitive to minimum wage policies. We used data ( n = 11,698 unique respondents) from the Health and Retirement Study and a difference-in-differences design to evaluate associations between increases in state minimum wage between 2010 and 2014 and family/friend and paid caregiving consumed by adults age 65+ years. We also examined responses to increases in minimum wage for respondents with dementia or Medicaid beneficiaries. People living in states that increased their minimum wage did not consume substantially different hours of family/friend, paid, or any family/friend or paid caregiving. We did not observe differential responses between increases in minimum wage and hours of family/friend or paid caregiving among people with dementia or Medicaid beneficiaries. Increases in state minimum wage were not associated with changes in caregiving consumed by adults age 65+.

Did Minimum Wage Policy Changes Impact Home Health Workforce?

“…30 A recent study found that state MW increases were not associated with higher utilization of paid home care services among older residents with dementia. 31 MW policies would not increase the use of home care if the policy did not increase employment. Given the market shortage of home health aides, home health employers may have to recruit workers from other industries.…”