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The Labor Supply of Nurses and Nursing Assistants in the United States

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Author Info
John P. Burkett () (University of Rhode Island)

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Abstract

Health care administrators and public policy makers are currently much concerned with the labor supply of nurses and nursing assistants. Hospitals and nursing homes, complaining of labor shortages, request public assistance to enable them to pay higher wages. Before committing public funds, policy makers want up-to-date estimates of the wage elasticities of labor supply for nurses and nursing assistants. Constructing a framework within which these elasticities can be estimated requires consideration of the nature and possible origins of the reported shortages. Based on annual time-series data for the US, 1988-2002, the study has derived posterior distributions for short- and long-run own wage elasticities of labor supply by Registered Nurses (RN) and nursing aides, orderlies, and attendants (NAOA). This analysis suggests that increased public assistance to health care providers, designed to raise wages, probably would not reduce reported shortages arising from monopsony power but would nonetheless appreciably increase employment of RNs and NAOAs.

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File URL: http://college.holycross.edu/eej/Volume31/V31N4P585_599.pdf
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Publisher Info
Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 31 (2005)
Issue (Month): 4 (Fall)
Pages: 585-599
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Handle: RePEc:eej:eeconj:v:31:y:2005:i:4:p:585-599

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Postal: Dr. Mary H. Lesser, Department of Economics, Iona College, New Rochelle, NY 10801-1890
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Janet Currie & Mehdi Farsi & W. Bentley MacLeod, 2003. "Cut to the Bone? Hospital Takeovers and Nurse Employment Contracts," NBER Working Papers 9428, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Daniel Sullivan, 1989. "Monopsony Power in the Market for Nurses," NBER Working Papers 3031, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Sims, Christopher A & Uhlig, Harald, 1991. "Understanding Unit Rooters: A Helicopter Tour," Econometrica, Econometric Society, vol. 59(6), pages 1591-99, November. [Downloadable!] (restricted)
    Other versions:
  4. Christopher A. Sims, 1988. "Bayesian skepticism on unit root econometrics," Discussion Paper / Institute for Empirical Macroeconomics 3, Federal Reserve Bank of Minneapolis. [Downloadable!]
    Other versions:
  5. V. Bhaskar & Alan Manning & Ted To, 2002. "Oligopsony and Monopsonistic Competition in Labor Markets," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 155-174, Spring. [Downloadable!] (restricted)
  6. John Geweke & Gautam Gowrisankaran & Robert J. Town, 2003. "Bayesian Inference for Hospital Quality in a Selection Model," Econometrica, Econometric Society, vol. 71(4), pages 1215-1238, 07. [Downloadable!] (restricted)
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  7. Anthony Heyes, 2003. "The Economics of Vocation or Why is a Badly Paid Nurse a Good Nurse?," Royal Holloway, University of London: Discussion Papers in Economics 03/4, Department of Economics, Royal Holloway University of London, revised Dec 2003. [Downloadable!]
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  8. Hirsch, Barry T. & Schumacher, Edward J., 1995. "Monopsony power and relative wages in the labor market for nurses," Journal of Health Economics, Elsevier, vol. 14(4), pages 443-476, October. [Downloadable!] (restricted)
    Other versions:
  9. Sullivan, Daniel, 1989. "Monopsony Power in the Market for Nurses," Journal of Law & Economics, University of Chicago Press, vol. 32(2), pages S135-78, October.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Reagan Baughman & Kristin Smith, 2007. "The labor market for direct care workers," New England Public Policy Center Working Paper 07-4, Federal Reserve Bank of Boston. [Downloadable!]
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This page was last updated on 2009-11-18.


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