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The Wage and Job Impacts of Hospitals on Local Labor Markets

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  • Anne M. Mandich
  • Jeffrey H. Dorfman

Abstract

This study examines the impact of hospitals on local labor markets in rural and urban counties. We measure the ability of hospitals, particularly in rural communities, to attract nonhealth-related employment and provide higher wage jobs to residents based on their education level. Results find hospital employees with an associate’s degree can expect a 21.4% wage premium, when compared with alternative opportunities, and those with a bachelor’s degree can earn 12.2% more working in a hospital. Hospitals are shown to be positively related to overall employment as well as exhibit positive employment spillover. For rural counties, a short-term general hospital is associated with 559 jobs in the county, 60 of which are hospital based and 499 are non–health care related. With the positive benefits on wages and non–health care job growth, hospitals have measurable positive labor market outcomes above their primary objective of providing health care access, particularly in rural counties.

Suggested Citation

  • Anne M. Mandich & Jeffrey H. Dorfman, 2017. "The Wage and Job Impacts of Hospitals on Local Labor Markets," Economic Development Quarterly, , vol. 31(2), pages 139-148, May.
    • Handle: RePEc:sae:ecdequ:v:31:y:2017:i:2:p:139-148
    DOI: 10.1177/0891242417691609
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    References listed on IDEAS

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