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Foreign nurse importation and the supply of native nurses

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  • Cortés, Patricia
  • Pan, Jessica

Abstract

The importation of foreign registered nurses has been used as a strategy to ease nursing shortages in the United States. The effectiveness of this policy depends critically on the long-run response of native nurses. We examine the effects of immigration of foreign-born registered nurses on the long-run employment and occupational choice of native nurses. Using a variety of empirical strategies that exploit the geographical distribution of immigrant nurses across US cities, we find evidence of large displacement effects – over a ten-year period, for every foreign nurse that migrates to a city, between 1 and 2 fewer native nurses are employed in the city. We find similar results using data on nursing board exam-takers at the state level – an increase in the flow of foreign nurses significantly reduces the number of natives sitting for licensure exams in more dependent states relative to less dependent states. Using data on self-reported workplace satisfaction among a sample of California nurses, we find suggestive evidence that part of the displacement effects could be driven by a decline in the perceived quality of the workplace environment.

Suggested Citation

  • Cortés, Patricia & Pan, Jessica, 2014. "Foreign nurse importation and the supply of native nurses," Journal of Health Economics, Elsevier, vol. 37(C), pages 164-180.
  • Handle: RePEc:eee:jhecon:v:37:y:2014:i:c:p:164-180
    DOI: 10.1016/j.jhealeco.2014.06.008
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Xie, Bin, 2017. "The Effects of Immigration Quotas on Wages, the Great Black Migration, and Industrial Development," IZA Discussion Papers 11214, Institute of Labor Economics (IZA).
    2. Jaeger, David A & Ruist, Joakim & Stuhler, Jan, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    3. Christian Dustmann & Giovanni Facchini & Cora Signorotto, 2015. "Population, Migration, Ageing and Health: A Survey," CReAM Discussion Paper Series 1518, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    4. Fabrizio Patriarca & Rama Dasi Mariani & Eugenio Levi, 2017. "Hate at First Sight? Dynamic Aspects of the Electoral Impact of Migrations: The Case of the UK and Brexit," SPRU Working Paper Series 2017-21, SPRU - Science Policy Research Unit, University of Sussex Business School.

    More about this item

    Keywords

    Foreign nurses; Immigration; Displacement;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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