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Nursing Wages and the Value of Educational Credentials


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  • Stephen T. Mennemeyer
  • Gary Gaumer
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    The evidence on nurses' wage rates is examined to determine whether higher credentials command a premium in the marketplace. Also examined are private rates of return to determine if higher nursing education is a worthwhile investment for individuals. Our findings are that, after taking into account experience and job requirements, employers pay only a modest premium for enhanced educational credentials leading to licensure for basic nursing practice. A more substantial premium is paid to a small segment of the nursing profession which holds the master's degree. These findings confirm other studies that show only subtle differences among associate, diploma, and baccalaureate nurses. We conclude that neither employers nor a large segment of the nursing profession would benefit from recent proposals to require that all nurses obtain the baccalaureate degree.

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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

    Volume (Year): 18 (1983)
    Issue (Month): 1 ()
    Pages: 32-48

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    Handle: RePEc:uwp:jhriss:v:18:y:1983:i:1:p:32-48

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    Cited by:
    1. Michael Dueker & Ada Jacox & David Kalist & Stephen Spurr, 2005. "The Practice Boundaries of Advanced Practice Nurses: An Economic and Legal Analysis," Journal of Regulatory Economics, Springer, Springer, vol. 27(3), pages 309-330, 01.
    2. Hirsch, Barry T. & Schumacher, Edward J., 1995. "Monopsony power and relative wages in the labor market for nurses," Journal of Health Economics, Elsevier, Elsevier, vol. 14(4), pages 443-476, October.
    3. Spetz, Joanne, 2002. "The value of education in a licensed profession: the choice of associate or baccalaureate degrees in nursing," Economics of Education Review, Elsevier, Elsevier, vol. 21(1), pages 73-85, February.
    4. repec:fth:prinin:335 is not listed on IDEAS
    5. Jones, Cheryl Bland & Gates, Michael, 2004. "Gender-based wage differentials in a predominantly female profession: observations from nursing," Economics of Education Review, Elsevier, Elsevier, vol. 23(6), pages 615-631, December.
    6. Coombs, Christopher & Cebula, Richard, 2009. "Are there rewards for language skills? Evidence from the earnings of registered nurses," MPRA Paper 49646, University Library of Munich, Germany.
    7. Surrey Walton & Philip Graves & Robert Sexton, 2005. "New Entry and the Rate of Return to Education: The Case of Registered Nurses," Atlantic Economic Journal, International Atlantic Economic Society, International Atlantic Economic Society, vol. 33(3), pages 325-336, September.
    8. Botelho, Anabela & Bland Jones, Cheryl & Kiker, B. F., 1998. "Nursing wages and educational credentials: the role of work experience and selectivity bias," Economics of Education Review, Elsevier, Elsevier, vol. 17(3), pages 297-306, June.
    9. repec:ebl:ecbull:v:9:y:2008:i:23:p:1-14 is not listed on IDEAS


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