The Impact of Mandated Paid Sick Leave Laws on the Long-Term Care Industry [Job Market Paper]

Abstract

This paper examines the effect of paid sick leave mandates on nursing home outcomes, with a focus on low paid nursing staff. I use the synthetic control group method and traditional difference-in-differences models along with Nursing Home Compare data and Vital Statistics microdata to estimate the causal effect of psl mandates on nursing home outcomes. I find significant increases in part-time nursing assistant staffing and improvements in resident health and safety. Nursing homes in areas with sick pay mandates also show reductions in the elderly mortality rate. Nursing assistant hours per resident day increase by 2.3 percent driven by a 12 percent increase in the hours for part time workers, and there are no significant reductions in hours of full time nursing assistants. I find improvements along multiple measures of patient health and safety. My calculations show that sick pay mandates helped prevent 4000 nursing home deaths per year among the elderly.

Priyankar Datta
Priyankar Datta
PhD candidate in Economics

Priyankar Datta is a doctoral candidate in economics at Michigan State University. Priyankar’s research interests are in Labor, Public, and Health economics.