Alleviating Worker Shortages Through Targeted Subsidies: Evidence from Incentive Payments in Healthcare / Ashvin Gandhi, Andrew Olenski, Krista J. Ruffini, Karen Shen.

Author
Gandhi, Ashvin [Browse]
Format
Book
Language
English
Published/​Created
Cambridge, Mass. National Bureau of Economic Research 2024.
Description
1 online resource: illustrations (black and white);

Details

Series
  • Working Paper Series (National Bureau of Economic Research) no. w32412. [More in this series]
  • NBER working paper series no. w32412
Summary note
Worker shortages are common in many industries. This paper examines the effect of government subsidies to address these shortages in the context of a reform that tied Medicaid payments to nursing home staffing levels. We find that the reform substantially increased staffing, especially for facilities serving many Medicaid patients. Facilities responded primarily by hiring workers in lower-wage roles rather than increasing hours of incumbent or high-wage staff. This contrasts with null effects we estimate for a non-incentivized rate increase, suggesting that the incentive structure of government payments--rather than just the level--is key to boosting employment in sectors facing worker shortages.
Notes
May 2024.
Source of description
Print version record
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