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Wage-Quality Relationship
- Paying higher wages can attract higher-quality workers and incentivize skill investment.
- However, increased labor costs might lead to employing fewer workers, potentially worsening care.
Nursing Homes as Research Setting
- Nursing homes are suitable for this study due to their reliance on low-wage workers and measurable quality metrics.
- Quality can be assessed through mortality rates, inspection violations, and the prevalence of issues like pressure ulcers.
Minimum Wage Impact on Nursing Homes
- Higher minimum wages increased earnings and staff retention in nursing homes.
- Surprisingly, they also correlate with reduced health inspection violations, pressure ulcers, and mortality rates.