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Retaining Australian Nurses: An Analysis of Nurses' Wages and Exit Rates

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  • Geena Sharma

Abstract

This study examines factors influencing Australian nurses' decisions to quit their jobs, the pathways they take after quitting, and estimates the average wage change associated with a nurse changing professions. Using data from the Household, Income, and Labour Dynamics in Australia Survey and panel data estimation methods, we find that a nurse's pre‐exit hourly wage is significantly associated with their exit decision when controlling for relevant exogenous factors. We also find that most nurses who change professions stay in the healthcare sector, which is characterised by significant increases in hourly wages and occupational prestige and suggests that these nurses change jobs for better opportunities. We conclude that while nurses' exit decisions are not associated with a loss of human capital in healthcare, higher wages would have to be paid if the policy objective is to increase nurse retention.

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  • Geena Sharma, 2024. "Retaining Australian Nurses: An Analysis of Nurses' Wages and Exit Rates," Australian Economic Papers, Wiley Blackwell, vol. 63(S1), pages 89-98, May.
    • Handle: RePEc:bla:ausecp:v:63:y:2024:i:s1:p:89-98
    DOI: 10.1111/1467-8454.12351
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    1. Askildsen, Jan Erik & Baltagi, Badi H. & Holmås, Tor Helge, 2002. "Will Increased Wages Reduce Shortage of Nurses? A Panel Data Analysis of Nurses’ Labour Supply," Working Papers in Economics 21/02, University of Bergen, Department of Economics.
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    3. Carol Propper & John Van Reenen, 2010. "Can Pay Regulation Kill? Panel Data Evidence on the Effect of Labor Markets on Hospital Performance," Journal of Political Economy, University of Chicago Press, vol. 118(2), pages 222-273, April.
    4. Michelle Cunich & Stephen Whelan, 2010. "Nurse Education and the Retention of Registered Nurses in New South Wales," The Economic Record, The Economic Society of Australia, vol. 86(274), pages 396-413, September.
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