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Are Foreign-Trained Nurses Perfect Substitutes for U.S.-Trained Nurses?

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  • Neeraj Kaushal
  • Robert J. Kaestner

Abstract

The authors investigate whether foreign- and U.S.-trained nurses are substitutes by studying the differences in their wages and whether wage differentials respond to relative supplies of foreign- and U.S.-trained nurses. Regression estimates suggest that foreign-trained nurses without a bachelor’s degree enjoy a wage premium of 1 to 3% over similar U.S.-trained nurses after adjusting for demographic, workplace, work type, and geographic differences, but no wage difference remains among those with a bachelor’s degree. For all nurses combined, the wage difference is modest and statistically insignificant. This result suggests that foreign- and U.S.-trained nurses are equally productive and close substitutes. The authors also test explicitly for whether foreign- and U.S.-trained nurses are substitutes and cannot reject the hypothesis that they are.

Suggested Citation

  • Neeraj Kaushal & Robert J. Kaestner, 2015. "Are Foreign-Trained Nurses Perfect Substitutes for U.S.-Trained Nurses?," ILR Review, Cornell University, ILR School, vol. 68(5), pages 1102-1125, October.
    • Handle: RePEc:sae:ilrrev:v:68:y:2015:i:5:p:1102-1125
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    Cited by:

    1. Nicholas Hill & Richard McGregory & James Peoples, 2018. "Noncitizen Employment and the Wages of Healthcare Support Workers in the US," Journal of Labor Research, Springer, vol. 39(4), pages 433-461, December.

    More about this item

    Keywords

    immigration; nurses; earnings;
    All these keywords.

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