Hospital Market Structure and the Return to Nursing Education
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.
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