IDEAS home Printed from https://ideas.repec.org/p/cch/wpaper/170010.html
   My bibliography  Save this paper

Impact of Individual and Institutional Factors on Wage Rate for Nurses in Canada: Is There a Monopsony Market?

Author

Listed:
  • Ruolz Ariste
  • Ali Bejaoui

Abstract

Several studies and media sources often report a labour shortage in the nursing profession. Given this shortage, one might assume that registered nurses (RNs) would have a perspective of maximizing wage income: increase the hourly wage or the number of hours worked. Institutional incentives in place can influence these two components, particularly the hourly wage. However, previous studies of Canadian nurse wages were limited to individual factors and did not take into account contextual factors such as hospital market share, labour market size or unionization. Based on market share, some refer to the nursing labour market as a monopsony; which depresses wages and might explain the shortage. However, this has not yet been tested empirically in the Canadian RN labour market. This article aims to fill this gap by using the confidential microdata files of the Labour Force Survey (LFS) for the years 2010 to 2012 and the multi-level analysis to shed light on this issue. The contribution of this work is that it takes into account both individual and contextual variables to try to explain nurses' hourly wage. In accordance with the monopsony model, we hypothesize a negative correlation between hourly wage and level of market share; i.e. monopsony employers would pay a lower wage rate. The results do not support the monopsony model to explain nursing labour shortage: there is no statistically significant relation between RNs wages and market share; no relation was found for market size either. This suggests explanation for RN labour shortage must be investigated elsewhere.

Suggested Citation

  • Ruolz Ariste & Ali Bejaoui, 2017. "Impact of Individual and Institutional Factors on Wage Rate for Nurses in Canada: Is There a Monopsony Market?," Working Papers 170010, Canadian Centre for Health Economics.
  • Handle: RePEc:cch:wpaper:170010
    as

    Download full text from publisher

    File URL: https://www.canadiancentreforhealtheconomics.ca/wp-content/uploads/2017/07/Ariste-Bejaoui.pdf
    File Function: First version, 2017
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martin Kroczek & Jochen Späth, 2022. "The attractiveness of jobs in the German care sector: results of a factorial survey," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(9), pages 1547-1562, December.

    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cch:wpaper:170010. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adrian Rohit Dass (email available below). General contact details of provider: https://edirc.repec.org/data/cchetca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.