The Impact of Wage Parity on Home Care Aides

Source: Steven L. Dawson and Carol A. Rodat Paraprofessional Healthcare Institute, June 2014

From the abstract:
Examines how a recent increase in the wages of New York City home health aides from $8 to $10 an hour impacts workers’ access to public benefits (e.g. food stamps, housing and child care assistance, and Home Energy Assistance) and tax credits such as the Earned Income Tax Credit. The report concludes that overall, the wage increase has been a net benefit to most home health aides. However, many aides will hit a “benefit plateau” after working 30 hours per week; their total family income, combined with the value of their public benefits and tax credits, will remain virtually stable after reaching the plateau.

The charts below provide an overview of how the incomes of three workers with different family compositions may be affected when increasing hours above 20 per week.

single, 2 children

2 incomes, 2 children

single, no children