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Nurses and physicians: a longitudinal analysis of mobility between jobs and labor supply

Author

Listed:
  • Leif Andreassen

    (Statistics Norway)

  • Maria Laura Tommaso

    (University of Torino
    Collegio Carlo Alberto
    The Ragnar Frisch Centre for Economic Research)

  • Steinar Strøm

    () (The Ragnar Frisch Centre for Economic Research)

Abstract

Abstract We estimate a dynamic discrete choice model of registered nurses’ labor supply. A distinguished feature of our model is that the random terms in the utility functions are correlated over time and jobs (habit or job persistence). Past options and not only the past optimal choices matter for the current choices. Given observed incentives and institutional constraints on offered hours, we find that nurses are mobile when they are young (less mobility than among physicians), but there is also a weak tendency of higher mobility again when they are approaching retirement age. Wage increases have a modest impact on labor supply. The overall elasticity for nurses is close to zero. These low elasticities shadow for stronger responses, shifting labor away from part-time jobs in the public and private sector toward full-time jobs in the private sector. A change in taxation away from the progressive tax system toward a flat tax of 28 % gives registered nurses a very modest incentive to shift their job to private hospitals. For physicians, the impact is stronger.

Suggested Citation

  • Leif Andreassen & Maria Laura Tommaso & Steinar Strøm, 2017. "Nurses and physicians: a longitudinal analysis of mobility between jobs and labor supply," Empirical Economics, Springer, vol. 52(4), pages 1235-1269, June.
  • Handle: RePEc:spr:empeco:v:52:y:2017:i:4:d:10.1007_s00181-016-1116-2
    DOI: 10.1007/s00181-016-1116-2
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    References listed on IDEAS

    as
    1. Askildsen, Jan Erik & Baltagi, Badi H. & Holmås, Tor Helge, 2002. "Will Increased Wages Reduce Shortage of Nurses? A Panel Data Analysis of Nurses’ Labour Supply," Working Papers in Economics 21/02, University of Bergen, Department of Economics.
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    More about this item

    Keywords

    Nurses’ labor supply; Multi-sector; Panel data;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • I10 - Health, Education, and Welfare - - Health - - - General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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