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Hospital Staffing and Local Pay: an Investigation into the Impact of Local variations in the Competitiveness of Nurses Pay on the Staffing of Hospitals in France

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  • Eric Delattre
  • Jean-Baptiste Combès
  • Bob Elliott
  • Diane Skatun

    ()
    (THEMA, Universite de Cergy-Pontoise
    Health Economics Research Unit, University of Aberdeen
    Health Economics Research Unit, University of Aberdeen
    Health Economics Research Unit, University of Aberdeen)

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    Abstract

    Research has shown that where nurses’ wages are regulated but wages in other sectors are not this results in spatial variations in the competitiveness of nurses pay and that in England these are correlated with spatial differences in nurses’ labour supply. In France there is general regulation of wages and public hospitals compete with the private hospital and non hospital sectors for nurses. We construct and employ a unique dataset on nurses pay and the characteristics of hospitals in France. We undertake the first study of the impact of spatial wage differentials on nursing supply to French public hospitals. We show that nurse assistants’ labour supply is sensitive to spatial wage differentials, the more competitive their pay the smaller the shortage of nurse assistants, and that registered nurses and nurse assistants labour supply are interdependent, the greater the supply of nurse assistants the greater the supply of registered nurses.

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    File URL: http://www.u-cergy.fr/thema/repec/2012-35.pdf
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    Bibliographic Info

    Paper provided by THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise in its series THEMA Working Papers with number 2012-35.

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    Date of creation: 2012
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    Handle: RePEc:ema:worpap:2012-35

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    Related research

    Keywords: Wage regulation; local pay; standardised spatial wage differentials; nursing shortage; nursing labour supply;

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    References

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    1. Wouter Vermeulen & J. van Ommeren, 2006. "Compensation of regional unemployment in housing markets," CPB Discussion Paper 57, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Joao Pereira & Aurora Galego, 2007. "Regional Wage Differentials: Static And Dynamic Approaches," CEFAGE-UE Working Papers 2007_07, University of Evora, CEFAGE-UE (Portugal).
    3. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Economics Department Working Papers 486, OECD Publishing.
    4. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2004. "Spatial Wage Disparities: Sorting Matters!," CEPR Discussion Papers 4240, C.E.P.R. Discussion Papers.
    5. Robert Elliott & Ada Ma & Matt Sutton & Diane Skatun & Nigel Rice & Stephen Morris & Alex McConnachie, 2010. "The role of the staff MFF in distributing NHS funding: taking account of differences in local labour market conditions," Health Economics, John Wiley & Sons, Ltd., vol. 19(5), pages 532-548.
    6. Carol Propper & John Van Reenen, 2010. "Can Pay Regulation Kill? Panel Data Evidence on the Effect of Labor Markets on Hospital Performance," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 118(2), pages 222-273, 04.
    7. Daron Acemoglu & Amy Finkelstein, 2008. "Input and Technology Choices in Regulated Industries: Evidence from the Health Care Sector," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 116(5), pages 837-880, October.
    8. Dominique Meurs & Cyriaque Edon, 2007. "France: A Limited Effect Of Regions On Public Wage Differentials?," Manchester School, University of Manchester, vol. 75(4), pages 479-500, 07.
    9. Inmaculada Garcia & Jose Alberto Molina, 2002. "Inter-regional wage differentials in Spain," Applied Economics Letters, Taylor & Francis Journals, vol. 9(4), pages 209-215.
    10. Elliott, Robert F. & Ma, Ada H.Y. & Scott, Anthony & Bell, David & Roberts, Elizabeth, 2007. "Geographically differentiated pay in the labour market for nurses," Journal of Health Economics, Elsevier, vol. 26(1), pages 190-212, January.
    11. Andrew Cook & Martin Gaynor & Melvin Stephens, Jr. & Lowell Taylor, 2010. "The Effect of Hospital Nurse Staffing on Patient Health Outcomes: Evidence from California's Minimum Staffing Regulation," NBER Working Papers 16077, National Bureau of Economic Research, Inc.
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    Cited by:
    1. Martin, Cécile, 2014. "Concurrence, prix et qualité de la prise en charge en EHPAD en France : Analyses micro-économétriques," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/13712 edited by Dormont, Brigitte, October.

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