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The short run elasticity of National Health Service nurses’ labour supply in Great Britain

Author

Listed:
  • Rowena Crawford

    (Institute for Fiscal Studies and Institute for Fiscal Studies)

  • Richard Disney

    (Institute for Fiscal Studies and University of Sussex)

  • Carl Emmerson

    (Institute for Fiscal Studies and Institute for Fiscal Studies)

Abstract

The paper investigates the short run responsiveness of National Health Service (NHS) nurses’ labour supply to changes in wages of NHS nurses relative to wages in outside options available to nurses, utilising the panel data aspect of the Annual Survey of Hours and Earnings. We find the short run responsiveness of NHS nurses’ labour supply to the relative wage of NHS nurses is positive and statistically significant, albeit economically small, in regions outside the London area. In contrast, in the London region, the short run elasticity is much higher. We discuss the policy implications of these findings.

Suggested Citation

  • Rowena Crawford & Richard Disney & Carl Emmerson, 2015. "The short run elasticity of National Health Service nurses’ labour supply in Great Britain," IFS Working Papers W15/04, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:15/04
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    File URL: https://www.ifs.org.uk/uploads/publications/wps/WP201504.pdf
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    References listed on IDEAS

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    1. Douglas O. Staiger & Joanne Spetz & Ciaran S. Phibbs, 2010. "Is There Monopsony in the Labor Market? Evidence from a Natural Experiment," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 211-236, April.
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    3. Phillips, V. L., 1995. "Nurses' labor supply: Participation, hours of work, and discontinuities in the supply function," Journal of Health Economics, Elsevier, vol. 14(5), pages 567-582, December.
    4. Di Tommaso, M.L. & Strøm, S. & Sæther, E.M., 2009. "Nurses wanted: Is the job too harsh or is the wage too low?," Journal of Health Economics, Elsevier, vol. 28(3), pages 748-757, May.
    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.
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    7. Hanel, Barbara & Kalb, Guyonne & Scott, Anthony, 2014. "Nurses’ labour supply elasticities: The importance of accounting for extensive margins," Journal of Health Economics, Elsevier, vol. 33(C), pages 94-112.
    8. Elliott, Robert F. & Ma, Ada H.Y. & Scott, Anthony & Bell, David & Roberts, Elizabeth, 2007. "Geographically differentiated pay in the labour market for nurses," Journal of Health Economics, Elsevier, vol. 26(1), pages 190-212, January.
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    Citations

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    Cited by:

    1. Moscelli, Giuseppe & Sayli, Melisa & Mello, Marco, 2022. "Staff Engagement, Job Complementarity and Labour Supply: Evidence from the English NHS Hospital Workforce," IZA Discussion Papers 15126, Institute of Labor Economics (IZA).
    2. Kalb, Guyonne & Meekes, Jordy, 2024. "Nursing before and after COVID-19: Outflows, Inflows and Self-Employment," IZA Discussion Papers 16772, Institute of Labor Economics (IZA).
    3. Anna Sokolova & Todd Sorensen, 2021. "Monopsony in Labor Markets: A Meta-Analysis," ILR Review, Cornell University, ILR School, vol. 74(1), pages 27-55, January.
    4. Anita Charlesworth & Sarah Lafond, 2017. "Shifting from Undersupply to Oversupply: Does NHS Workforce Planning Need a Paradigm Shift?," Economic Affairs, Wiley Blackwell, vol. 37(1), pages 36-52, February.
    5. Moscelli, G.; & Sayli, M.; & Mello, M.;, 2022. "Staff engagement, coworkers’ complementarity and employee retention: Evidence from English NHS hospitals," Health, Econometrics and Data Group (HEDG) Working Papers 22/25, HEDG, c/o Department of Economics, University of York.
    6. Serra-Sastre, Victoria, 2024. "Workplace violence and intention to quit in the English NHS," LSE Research Online Documents on Economics 121623, London School of Economics and Political Science, LSE Library.
    7. Moscelli, Giuseppe & Sayli, Melisa & Mello, Marco, 2022. "Staff Engagement, Coworkers' Complementarity and Employee Retention: Evidence from English NHS Hospitals," IZA Discussion Papers 15638, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    NHS; labour supply; relative wages;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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