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The Returns to Nursing: Evidence from a Parental Leave Program

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  • Benjamin U. Friedrich
  • Martin B. Hackmann

Abstract

Nurses comprise the largest health profession. In this paper, we measure the effect of nurses on health care delivery and patient health outcomes across sectors. Our empirical strategy takes advantage of a parental leave program, which led to a sudden, unintended, and persistent 12% reduction in nurse employment. Our findings indicate detrimental effects on hospital care delivery as indicated by an increase in 30-day readmission rates and a distortion of technology utilization. The effects for nursing home care are more drastic. We estimate a persistent 13% increase in nursing home mortality among the elderly aged 85 and older. Our results also highlight an unintended negative consequence of parental leave programs borne by providers and patients.

Suggested Citation

  • Benjamin U. Friedrich & Martin B. Hackmann, 2017. "The Returns to Nursing: Evidence from a Parental Leave Program," NBER Working Papers 23174, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:23174
    Note: AG EH LS PE
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    References listed on IDEAS

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    Cited by:

    1. Rita Ginja & Arizo Karimi & Pengpeng Xiao, 2023. "Employer Responses to Family Leave Programs," American Economic Journal: Applied Economics, American Economic Association, vol. 15(1), pages 107-135, January.
    2. Brenøe, Anne Ardila & Canaan, Serena & Harmon, Nikolaj & Royer, Heather, 2019. "Is Parental Leave Costly for Firms and Coworkers?," IZA Discussion Papers 12870, Institute of Labor Economics (IZA).
    3. Rachet-Jacquet, Laurie, 2022. "Do breaks from surgery improve the performance of orthopaedic surgeons?," Journal of Health Economics, Elsevier, vol. 85(C).
    4. Martin Hackmann & Joerg Heining & Roman Klimke & Maria Polyakova & Holger Seibert, 2021. "General Equilibrium Effects of Insurance Expansions: Evidence from Long-Term Care Labor Markets," Upjohn Working Papers 21-357, W.E. Upjohn Institute for Employment Research.
    5. Marc Garbey & Guillaume Joerger & Shannon Furr & Vid Fikfak, 2020. "A model of workflow in the hospital during a pandemic to assist management," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-18, November.
    6. Martin B. Hackmann, 2019. "Incentivizing Better Quality of Care: The Role of Medicaid and Competition in the Nursing Home Industry," American Economic Review, American Economic Association, vol. 109(5), pages 1684-1716, May.
    7. Furtado, Delia & Ortega, Francesc, 2020. "Does Immigration Improve Quality of Care in Nursing Homes?," IZA Discussion Papers 13552, Institute of Labor Economics (IZA).
    8. Carol Propper & George Stoye & Ben Zaranko, 2020. "The Wider Impacts of the Coronavirus Pandemic on the NHS," Fiscal Studies, John Wiley & Sons, vol. 41(2), pages 345-356, June.

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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