Should Government Subsidize Caregiver Wages? Some Evidence on Worker Turnover and the Cost of Long-Term Care in Group Homes for Persons With Developmental Disabilities

Detailed data on community-based residential services providers indicated a high worker turnover for long-term care costs. The findings indicated that providers were unlikely to reduce turnover on their own, since its associated costs were either tolerably small or borne by others. An analysis indicated that it was socially beneficial for the government to reduce turnover through wage subsidization in this sector.