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The Labor Supply of Nurses and Nursing Assistants in the United States

  • John P. Burkett

    ()

    (University of Rhode Island)

Health care administrators and public policy makers are currently much concerned with the labor supply of nurses and nursing assistants. Hospitals and nursing homes, complaining of labor shortages, request public assistance to enable them to pay higher wages. Before committing public funds, policy makers want up-to-date estimates of the wage elasticities of labor supply for nurses and nursing assistants. Constructing a framework within which these elasticities can be estimated requires consideration of the nature and possible origins of the reported shortages. Based on annual time-series data for the US, 1988-2002, the study has derived posterior distributions for short- and long-run own wage elasticities of labor supply by Registered Nurses (RN) and nursing aides, orderlies, and attendants (NAOA). This analysis suggests that increased public assistance to health care providers, designed to raise wages, probably would not reduce reported shortages arising from monopsony power but would nonetheless appreciably increase employment of RNs and NAOAs.

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File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume31/V31N4P585_599.pdf
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Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 31 (2005)
Issue (Month): 4 (Fall)
Pages: 585-599

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Handle: RePEc:eej:eeconj:v:31:y:2005:i:4:p:585-599
Contact details of provider: Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA
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  1. Anthony Heyes, 2003. "The Economics of Vocation or Why is a Badly Paid Nurse a Good Nurse?," Royal Holloway, University of London: Discussion Papers in Economics 03/4, Department of Economics, Royal Holloway University of London, revised Dec 2003.
  2. John Geweke & Gautam Gowrisankaran & Robert J. Town, 2002. "Bayesian inference for hospital quality in a selection model," Working Paper Series 2002-18, Federal Reserve Bank of San Francisco.
  3. Hirsch, B.T. & Schumacher, E.J., 1993. "Monopsony Power and Relative Wages in the Labor Market for Nurses," Working Papers 1993_06_03, Department of Economics, Florida State University.
  4. Christopher A. Sims, 1988. "Bayesian skepticism on unit root econometrics," Discussion Paper / Institute for Empirical Macroeconomics 3, Federal Reserve Bank of Minneapolis.
  5. Daniel Sullivan, 1989. "Monopsony Power in the Market for Nurses," NBER Working Papers 3031, National Bureau of Economic Research, Inc.
  6. Douglas Staiger & Joanne Spetz & Ciaran Phibbs, 2008. "Is There Monopsony In The Labor Market? Evidence From A Natural Experiment," Working Papers 1115, Princeton University, Department of Economics, Industrial Relations Section..
  7. Sims, Christopher A & Uhlig, Harald, 1991. "Understanding Unit Rooters: A Helicopter Tour," Econometrica, Econometric Society, vol. 59(6), pages 1591-99, November.
  8. L. Randall Wray & Stephanie Bell, 2004. "Introduction," Chapters, in: Credit and State Theories of Money, chapter 1 Edward Elgar.
  9. Janet Currie & Mehdi Farsi & W. Bentley MacLeod, 2003. "Cut to the Bone? Hospital Takeovers and Nurse Employment Contracts," NBER Working Papers 9428, National Bureau of Economic Research, Inc.
  10. Anthony Bartzokas & Sunil Mani, 2004. "Introduction," Chapters, in: Financial Systems, Corporate Investment in Innovation, and Venture Capital, chapter 1 Edward Elgar.
  11. Alan Manning & Ted To, 2002. "Oligopsony and Monopsonistic Competition in Labor Markets," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 155-174, Spring.
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