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Well-Paid Nurses are Good Nurses

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  • Alessandro Fedele

    (Free University of Bolzano‐Bozen, Faculty of Economics and Management)

Abstract

Some recent articles suggest that increasing wage in the nursing market with the aim of reducing shortage may yield a negative effect on the average ability and motivation of applicants attracted and, in turn, on the average quality of care. This finding is at odds with empirical evidence and has been criticized on the grounds that nurses' motivation is modeled in an overly simplistic way. The present paper provides a novel theoretical framework where the orientation of nurses' motivation - intrinsic versus extrinsic - is taken into account, and the precise distinction between intrinsic and extrinsic motivation is delineated on the basis of self-determination and person-environment fit theories. Findings show that high wages attract able and motivated individuals, thus maximizing the average quality of care. This result reconciles theory with evidence.

Suggested Citation

  • Alessandro Fedele, 2015. "Well-Paid Nurses are Good Nurses," BEMPS - Bozen Economics & Management Paper Series BEMPS24, Faculty of Economics and Management at the Free University of Bozen.
  • Handle: RePEc:bzn:wpaper:bemps24
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    References listed on IDEAS

    as
    1. Heyes, Anthony G., 2007. "Optimal wages in the market for nurses," Journal of Health Economics, Elsevier, vol. 26(5), pages 1031-1033, September.
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    More about this item

    Keywords

    Nurses' wage; nurses' ability; nurses' motivation; quality of care; self-determination and person-environment fit theories;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines

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