The Impact of Nurse Turnover on Quality of Care and Mortality in Nursing Homes: Evidence from the Great Recession

Authors

Yaa Akosa Antwi, Indiana University - Purdue University Indianapolis
John R. Bowblis, Miami University

Series

Upjohn Institute working paper ; 16-249

**Published Version**

In American Journal of Health Economics 4(2): 131–163

DOI

10.17848/wp16-249

Issue Date

January 2016

Abstract

We estimate the causal effect of nurse turnover on mortality and the quality of nursing home care with a fixed effect instrumental variable estimation that uses the unemployment rate as an instrument for nursing turnover. We find that ignoring endogeneity leads to a systematic underestimation of the effect of nursing turnover on mortality and quality of care in a sample of California nursing homes. Specifically, 10 percentage point increase in nurse turnover results in a facility receiving 2.2 additional deficiencies per annual regulatory survey, reflecting a 19.3 percent increase. Not accounting for endogeneity of turnover leads to results that suggest only a 1 percent increase in deficiencies. We also find suggestive evidence that turnover results in lower quality in other dimensions and may increase mortality. An implication of our mortality results is that turnover may be a mechanism for the procyclicality of mortality rates.

Sponsorship

W.E. Upjohn Institute for Employment Research Early Career Research Award 14-147-01, the Indiana University Purdue University Indianapolis (IUPUI) School of Liberal Art Summer grant program, and Miami University's Farmer School of Business Summer grant program

Subject Areas

LABOR MARKET ISSUES; Job security and unemployment dynamics; Turnover