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Hospital Market Structure and the Return to Nursing Education

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  • LaVonne A. Booton
  • Julia I. Lane

Abstract

Wages and employment patterns of over 5000 nurses are examined for a state where extensive corporate ownership of hospitals magnifies the concentrated nature of the hospital setting. While baccalaureate nurses hold more positions of responsibility, regression analysis shows that the interaction of possessing a baccalaureate degree and hospital employment results in a significantly negative effect on wages. The study suggests that this effect is due to the oligopsonistic hospital structure rather than to lack of recognition by employers of differences between baccalaureate and other nurses.

Suggested Citation

  • LaVonne A. Booton & Julia I. Lane, 1985. "Hospital Market Structure and the Return to Nursing Education," Journal of Human Resources, University of Wisconsin Press, vol. 20(2), pages 184-196.
    • Handle: RePEc:uwp:jhriss:v:20:y:1985:i:2:p:184-196
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    Citations

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    Cited by:

    1. Jones, Cheryl Bland & Gates, Michael, 2004. "Gender-based wage differentials in a predominantly female profession: observations from nursing," Economics of Education Review, Elsevier, vol. 23(6), pages 615-631, December.
    2. Heyung-Jik Lee, 2008. "The value of nursing education in Canada: the choice of diploma or baccalaureate degree," Economics Bulletin, AccessEcon, vol. 9(23), pages 1-14.
    3. Edward J. Schumacher & Barry T. Hirsch, 1997. "Compensating Differentials and Unmeasured Ability in the Labor Market for Nurses: Why Do Hospitals Pay More?," ILR Review, Cornell University, ILR School, vol. 50(4), pages 557-579, July.
    4. Botelho, Anabela & Bland Jones, Cheryl & Kiker, B. F., 1998. "Nursing wages and educational credentials: the role of work experience and selectivity bias," Economics of Education Review, Elsevier, vol. 17(3), pages 297-306, June.
    5. Sullivan, Daniel, 1989. "Monopsony Power in the Market for Nurses," Journal of Law and Economics, University of Chicago Press, vol. 32(2), pages 135-178, October.
    6. Sæther, Erik Magnus, 2009. "Wage Policies for Health Personnel - Essays on the Wage Impact on Hours of Work and Practice Choice," HERO Online Working Paper Series 2005:1, University of Oslo, Health Economics Research Programme.
    7. Sæther, Erik Magnus, 2009. "Compensating differentials for nurses," HERO Online Working Paper Series 2004:10, University of Oslo, Health Economics Research Programme.
    8. Sandra Rodriguez A., 2015. "Poder de monopsonio en el mercado de aseguramiento en salud en Colombia," Revista de Economía del Caribe 14779, Universidad del Norte.
    9. Edward J. Schumacher, "undated". "Relative Wages and the Returns to Education in the Labor Market for Registered Nurses," Working Papers 9601, East Carolina University, Department of Economics.
    10. repec:ebl:ecbull:v:9:y:2008:i:23:p:1-14 is not listed on IDEAS
    11. Spetz, Joanne, 2002. "The value of education in a licensed profession: the choice of associate or baccalaureate degrees in nursing," Economics of Education Review, Elsevier, vol. 21(1), pages 73-85, February.
    12. Barth, Erling & Dale-Olsen, Harald, 2009. "Monopsonistic discrimination, worker turnover, and the gender wage gap," Labour Economics, Elsevier, vol. 16(5), pages 589-597, October.
    13. Michael Dueker & Ada Jacox & David Kalist & Stephen Spurr, 2005. "The Practice Boundaries of Advanced Practice Nurses: An Economic and Legal Analysis," Journal of Regulatory Economics, Springer, vol. 27(3), pages 309-330, January.
    14. Erling Barth & Harald Dale-Olsen, 1999. "Monopsonistic Discrimination and the Gender-Wage Gap," NBER Working Papers 7197, National Bureau of Economic Research, Inc.
    15. Yang-Ming Chang & Bhavneet Walia, 2007. "Wage discrimination and partial compliance with the minimum wage law," Economics Bulletin, AccessEcon, vol. 10(4), pages 1-7.
    16. Deneffe, Daniel & Masson, Robert T., 2002. "What do not-for-profit hospitals maximize?," International Journal of Industrial Organization, Elsevier, vol. 20(4), pages 461-492, April.
    17. Ana Xavier, "undated". "Modelling the Demand for and Supply of Elective Surgery: A Duopoly Model," Discussion Papers 99/38, Department of Economics, University of York.
    18. repec:ebl:ecbull:v:10:y:2007:i:4:p:1-7 is not listed on IDEAS
    19. Hervani, Aref A., 2005. "Can oligopsony power be measured? The case of U.S. old newspapers market," Resources, Conservation & Recycling, Elsevier, vol. 44(4), pages 343-380.

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