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Wage policy in the health care sector: a panel data analysis of nurses' labour supply

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Author Info
Jan Erik Askildsen (Programme for Health Economics in Bergen, Department of Economics, University of Bergen, Norway)
Badi H. Baltagi (Department of Economics, Texas A&M University, USA)
Tor Helge Holmås (Programme for Health Economics in Bergen, Department of Economics, University of Bergen, Norway)

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Abstract

Shortage of nurses is a problem in several countries. It is an unsettled question whether increasing wages constitute a viable policy for extracting more labour supply from nurses. In this paper we use a unique matched panel data set of Norwegian nurses covering the period 1993-1998 to estimate wage elasticities. The data set includes detailed information on 19 638 individuals over 6 years totalling 69 122 observations. The estimated wage elasticity after controlling for individual heterogeneity, sample selection and instrumenting for possible endogeneity is 0.21. Individual and institutional features are statistically significant and important for working hours. Contractual arrangements as represented by shift work are also important for hours of work, and omitting information about this common phenomenon will underestimate the wage effect. Copyright © 2003 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.836
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 12 (2003)
Issue (Month): 9 ()
Pages: 705-719
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Handle: RePEc:wly:hlthec:v:12:y:2003:i:9:p:705-719

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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References listed on IDEAS
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. Bollinger, Christopher R, 1998. "Measurement Error in the Current Population Survey: A Nonparametric Look," Journal of Labor Economics, University of Chicago Press, vol. 16(3), pages 576-94, July. [Downloadable!] (restricted)
  2. Ekaterini Kyriazidou, 1997. "Estimation of a Panel Data Sample Selection Model," Econometrica, Econometric Society, vol. 65(6), pages 1335-1364, November.
  3. Verbeek, Marno & Nijman, Theo, 1992. "Testing for Selectivity Bias in Panel Data Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 681-703, August. [Downloadable!] (restricted)
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  4. Dustmann, Christian & Rochina-Barrachina, María Engracia, 2000. "Selection Correction in Panel Data Models: An Application to Labour Supply and Wages," IZA Discussion Papers 162, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Charlier, Erwin & Melenberg, Bertrand & van Soest, Arthur, 2001. "An analysis of housing expenditure using semiparametric models and panel data," Journal of Econometrics, Elsevier, vol. 101(1), pages 71-107, March. [Downloadable!] (restricted)
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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. Catia Nicodemo, 2009. "Selection Bias and Unobservable Heterogeneity applied at the Wage Equation of European Married Women," Working Papers wpdea0906, Department of Applied Economics at Universitat Autonoma of Barcelona. [Downloadable!]
  2. Paul Frijters & Michael A. Shields & Stephen Wheatley Price, 2007. "Investigating the quitting decision of nurses: panel data evidence from the british national health service," Health Economics, John Wiley & Sons, Ltd., vol. 16(1), pages 57-73. [Downloadable!]
    Other versions:
  3. 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. [Downloadable!] (restricted)
  4. Mohnen, Pierre & Raymond, Wladimir & Palm, Franz & Schim van der Loeff, Sybrand, 2007. "The Behavior of the Maximum Likelihood Estimator of Dynamic Panel Data Sample Selection Models," UNU-MERIT Working Paper Series 007, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
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  5. 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!]
  6. Denise Doiron & Glenn Jones, 2004. "Nurses' retention and hospital characteristics in New South Wales, CHERE Discussion Paper No 52," Discussion Papers 52, CHERE, University of Technology, Sydney. [Downloadable!]
  7. Divine Ikenwilo & Anthony Scott, 2007. "The effects of pay and job satisfaction on the labour supply of hospital consultants," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1303-1318. [Downloadable!]
  8. Nilsson, William, 2005. "Unemployment, Splitting Up and Spousal Income Replacement," UmeÃ¥ Economic Studies 651, Umeå University, Department of Economics. [Downloadable!]
  9. Claude Montmarquette & Laure Thomas, 2005. "La pénurie de travailleurs qualifiés," CIRANO Project Reports 2005rp-03, CIRANO. [Downloadable!]
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