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Explaining Differences in Hospital Performance: Does the Answer Lie in the Labour Market?

Author

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  • Burgess, Simon
  • Gossage, Denise
  • Propper, Carol

Abstract

This Paper examines the relationship between performance of English public sector hospitals (NHS trusts) and the quality of their nursing staff. Performance ratings of NHS trusts published in 2001 and 2002 indicate a clear regional divide. This divide is not explained by lower medical need. The gap between wages in the private and public sector (the private sector premium) has a regional divide similar to that of the performance ratings. Utilising cross sectional variation in the private sector premium, we find that performance against several of the individual targets that are aggregated into the NHS performance ratings is negatively associated with the private sector premium.

Suggested Citation

  • Burgess, Simon & Gossage, Denise & Propper, Carol, 2003. "Explaining Differences in Hospital Performance: Does the Answer Lie in the Labour Market?," CEPR Discussion Papers 4118, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:4118
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    References listed on IDEAS

    as
    1. Carol Propper & Deborah Wilson, 2003. "The Use and Usefulness of Performance Measures in the Public Sector," Oxford Review of Economic Policy, Oxford University Press, vol. 19(2), pages 250-267, Summer.
    2. repec:rus:hseeco:122160 is not listed on IDEAS
    3. Julie Berry Cullen & Randall Reback, 2006. "Tinkering Toward Accolades: School Gaming Under a Performance Accountability System," NBER Working Papers 12286, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Romero-Medina, Antonio & Machado, Matilde P. & Mora, Ricardo, 2006. "A methodology to measure hospital quality using physicians' choices over training vacancies," UC3M Working papers. Economics we060201, Universidad Carlos III de Madrid. Departamento de EconomĂ­a.
    2. Matilde P. Machado & Ricardo Mora & Antonio Romero-Medina, 2012. "Can We Infer Hospital Quality From Medical Graduates’ Residency Choices?," Journal of the European Economic Association, European Economic Association, vol. 10(6), pages 1400-1424, December.
    3. Ross Mackay & Jonathan Williams, 2005. "Thinking about need: Public spending on the regions," Regional Studies, Taylor & Francis Journals, vol. 39(6), pages 815-828.
    4. David G. Blanchflower & Andrew J. Oswald, 2005. "Regional Wages and the Need for a Better Area Cost Adjustment," Public Money & Management, Taylor & Francis Journals, vol. 25(2), pages 86-88, April.

    More about this item

    Keywords

    performance ratings; private sector wage premia; public sector performance;

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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