Association for Public Policy Analysis & Management

This first study examines the 2013 Home Care Rule promulgated by the Department of Labor which came into effect in January 2015. This rule adds home care workers to the groups covered under the Federal Minimum Wage Mandate with minimum hourly and overtime rates. Taking advantage of variation in state minimum wage mandates before and after the new Rule took place in 2015, I use the conventional Difference-in-Differences method to estimate its impact on various labor outcomes including hourly wage rates, employment (extensive and intensive margin), wage and income, welfare benefits and public insurance (such as Medicaid participation) participation. I also examine the effect on the use of home care service; the cost of home care services; and the use of informal home care (family care).