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Will Increased Wages Reduce Shortage of Nurses? A Panel Data Analysis of Nurses' Labor Supply

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  • Jan Erik Askildsen

    (University of Bergen)

  • Badi H. Baltagi

    (Texas A&M University)

  • Tor Helge Holmås

    (University of Bergen)

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 labor supply from nurses. In this paper we use a unique matched panel data set of Norwegian nurses covering the period 1993-1997 to estimate wage elasticities. This data includes detailed information on 18,066 individuals over 5 years totaling 56,832 observations. The estimated elasticity when controlling for individual and time invariant fixed effects is significantly positive but not very high in magnitude. Individual and institutional features are significant and important for working hours. We have also access to information about contractual arrangements. It turns out that shift work is important for hours of work, and that omitting information about this common phenomenon will underestimate the wage effect.

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Bibliographic Info

Paper provided by International Conferences on Panel Data in its series 10th International Conference on Panel Data, Berlin, July 5-6, 2002 with number D1-2.

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Date of creation: Mar 2002
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Handle: RePEc:cpd:pd2002:d1-2

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Keywords: Nurses; labor supply; panel data; selection;

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  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.
  2. Phillips, V. L., 1995. "Nurses' labor supply: Participation, hours of work, and discontinuities in the supply function," Journal of Health Economics, Elsevier, vol. 14(5), pages 567-582, December.
  3. Charlier, E. & Melenberg, B. & Soest, A.H.O. van, 1997. "An Analysis of Housing Expenditure Using Semiparametric Models and Panel Data," Discussion Paper 1997-14, Tilburg University, Center for Economic Research.
  4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  5. 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).
  6. Ekaterini Kyriazidou, 1997. "Estimation of a Panel Data Sample Selection Model," Econometrica, Econometric Society, vol. 65(6), pages 1335-1364, November.
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Cited by:
  1. Emma Hall & Carol Propper & John Van Reenen, 2008. "Can pay regulation kill? Panel data evidence on the effect of labor markets on hospital performance," NBER Working Papers 13776, National Bureau of Economic Research, Inc.
  2. Di Tommaso Maria Laura & Strom Steinar & Saether Erik Magnus, 2007. "Nurses Wanted. Is the Job Too Harsh or is the Wage Too Low?," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200704, University of Turin.
  3. Dolado, Juan J. & Felgueroso, Florentino, 2008. "Occupational Mismatch and Moonlighting Among Spanish Physicians: Do Couples Matter?," CEPR Discussion Papers 6803, C.E.P.R. Discussion Papers.
  4. Frijters, Paul & Shields, Michael A. & Wheatley Price, Stephen, 2003. "Investigating the Quitting Decision of Nurses: Panel Data Evidence from the British National Health Service," IZA Discussion Papers 794, Institute for the Study of Labor (IZA).
  5. Baltagi, Badi H. & Bratberg, Espen & Holmås, Tor Helge, 2003. "A panel data study of physicians’ labor supply: The case of Norway," Working Papers in Economics 01/03, University of Bergen, Department of Economics.
  6. Diane Sk�tun & Emanuela Antonazzo & Anthony Scott & Robert Elliott, 2005. "The supply of qualified nurses: a classical model of labour supply," Applied Economics, Taylor & Francis Journals, vol. 37(1), pages 57-65.

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