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Addressing nurse shortages: what can policy makers learn from the econometric evidence on nurse labour supply?

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  • Michael A. Shields

Abstract

This paper provides a detailed review of the international studies that have used formal econometric models to investigate the labour supply decision of Registered Nurses (RNs). The main finding is that, at least in the short-run, RN labour supply appears to be fairly unresponsive to wage changes. Consequently, even large wage increases are unlikely to be successful in tackling current and predicted nurse shortages. This finding points to the importance of non-pecuniary job aspects in influencing labour supply. However, the paper concludes by arguing that these empirical findings should be viewed with some caution given both theoretical and econometric limitations. Copyright 2004 Royal Economic Society.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 114 (2004)
Issue (Month): 499 (November)
Pages: F464-F498

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Handle: RePEc:ecj:econjl:v:114:y:2004:i:499:p:f464-f498

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Cited by:
  1. Pieter Serneels & Abigail Barr, 2005. "Understanding Geographical Imbalances in the Health Workforce," Economics Series Working Papers GPRG-WPS-018, University of Oxford, Department of Economics.
  2. Stefanie Schurer & Jongsay Yong, 2010. "Personality, Well-being and Heterogeneous Valuations of Income and Work," Melbourne Institute Working Paper Series wp2010n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  3. Di Tommaso, M.L. & Strøm, S. & Sæther, E.M., 2009. "Nurses wanted: Is the job too harsh or is the wage too low?," Journal of Health Economics, Elsevier, vol. 28(3), pages 748-757, May.
  4. Frijters, Paul & Shields, Michael A. & Wheatley Price, Stephen, 2004. "To Teach or Not to Teach? Panel Data Evidence on the Quitting Decision," IZA Discussion Papers 1164, Institute for the Study of Labor (IZA).
  5. F. Barigozzi & D. Raggi, 2013. "The Lemons Problem in a Labor Market with Intrinsic Motivation. When Higher Salaries Pay Worse Workers," Working Papers wp883, Dipartimento Scienze Economiche, Universita' di Bologna.
  6. Michelle Cunich & Stephen Whelan, 2010. "Nurse Education and the Retention of Registered Nurses in New South Wales," The Economic Record, The Economic Society of Australia, vol. 86(274), pages 396-413, 09.
  7. Barbara Hanel & Guyonne Kalb & Anthony Scott, 2012. "Nurses' Labour Supply Elasticities: The Importance of Accounting for Extensive Margins," Melbourne Institute Working Paper Series wp2012n09, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  8. Pieter Serneels & Jose G. Montalvo & Gunilla Pettersson & Tomas Lievens & Jean Damascene Butera & Aklilu Kidanu, 2010. "Who Wants to Work in a Rural Health Post? The Role of Intrinsic Motivation, Rural Background and Faith-Based Institutions in Rwanda and Ethiopia," CSAE Working Paper Series 2010-10, Centre for the Study of African Economies, University of Oxford.
  9. Francesca Barigozzi & Gilberto Turati, 2009. "Human Health Care and Selection Effects. Understanding Labour Supply in the Market for Nurses," CHILD Working Papers wp18_09, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  10. Serneels, Pieter & Lindelow, Magnus & Garcia-Montalvo, Jose & Barr, Abigail, 2005. "For public service or money : understanding geographical imbalances in the health workforce," Policy Research Working Paper Series 3686, The World Bank.
  11. T. Kankaanranta & P. Rissanen, 2008. "Nurses’ intentions to leave nursing in Finland," The European Journal of Health Economics, Springer, vol. 9(4), pages 333-342, November.
  12. T. Kankaanranta & P. Rissanen, 2009. "The labor supply of registered nurses in Finland: the effect of wages and working conditions," The European Journal of Health Economics, Springer, vol. 10(2), pages 167-178, May.
  13. Elliott, Robert F. & Ma, Ada H.Y. & Scott, Anthony & Bell, David & Roberts, Elizabeth, 2007. "Geographically differentiated pay in the labour market for nurses," Journal of Health Economics, Elsevier, vol. 26(1), pages 190-212, January.
  14. Ann Issac & Nirmalya Syam, 2010. "Migration of Health Care Professionals from India: A Case Study of Nurses," Working Papers id:2403, eSocialSciences.

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