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Human health care and selection effects. Understanding labor supply in the market for nursing

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  • Francesca Barigozzi
  • Gilberto Turati

Abstract

The aim of this paper is to study (adverse) selection in a labor supply model where potential applicants are characterized by different vocational levels and skills. We look at how the composition of the pool of active workers changes as the wage rate increases. Contrary to what would expect, average productivity does not necessarily increase monotonically in the wage rate. We identify conditions in which a wage increase reduces the average productivity and/or average vocation of active workers. Our results help understand the potential impact of wage increases as a policy designed to resolving shortages in the labor market for nurses. Copyright © 2011 John Wiley & Sons, Ltd.

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  • Francesca Barigozzi & Gilberto Turati, 2012. "Human health care and selection effects. Understanding labor supply in the market for nursing," Health Economics, John Wiley & Sons, Ltd., vol. 21(4), pages 477-483, April.
    • Handle: RePEc:wly:hlthec:v:21:y:2012:i:4:p:477-483
    DOI: 10.1002/hec.1713
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    Cited by:

    1. Lamantia, Fabio & Pezzino, Mario, 2016. "Evolutionary efficacy of a Pay for Performance scheme with motivated agents," Journal of Economic Behavior & Organization, Elsevier, vol. 125(C), pages 107-119.
    2. Barigozzi, Francesca & Burani, Nadia, 2016. "Competition and screening with motivated health professionals," Journal of Health Economics, Elsevier, vol. 50(C), pages 358-371.
    3. Alessandro Fedele & Pierpaolo Giannoccolo, 2020. "Paying Politicians: Not Too Little, Not Too Much," Economica, London School of Economics and Political Science, vol. 87(346), pages 470-489, April.
    4. Schweri, Juerg & Hartog, Joop, 2017. "Do wage expectations predict college enrollment? Evidence from healthcare," Journal of Economic Behavior & Organization, Elsevier, vol. 141(C), pages 135-150.
    5. Schweri, Juerg & Hartog, Joop, 2014. "Do wage expectations influence the decision to enroll in nursing college?," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100542, Verein für Socialpolitik / German Economic Association.
    6. Sonnabend, Hendrik & Stadtmann, Georg, 2018. "Good intentions and unintended evil? Adverse effects of criminalizing clients in paid sex markets with voluntary and involuntary prostitution," Discussion Papers 400, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    7. Barigozzi, Francesca & Burani, Nadia, 2013. "Intrinsic Motivation in the Labor Market: Not Too Much, Thank You," AICCON Working Papers 124-2013, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    8. Alessandro Fedele, 2018. "Well‐paid nurses are good nurses," Health Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 663-674, April.
    9. Carroll David & Parasnis Jaai & Tani Massimiliano, 2021. "Why do women become teachers while men don’t?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(2), pages 793-823, April.
    10. Barigozzi, Francesca & Raggi, Davide, 2013. "The Lemons Problem in a Labor Market with Intrinsic Motivation," AICCON Working Papers 123-2013, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    11. F. Barigozzi & N. Burani & D. Raggi, 2013. "The Lemons Problem in a Labor Market with Intrinsic Motivation. When Higher Salaries Pay Worse Workers," Working Papers wp883, Dipartimento Scienze Economiche, Universita' di Bologna.
    12. F. Barigozzi & N. Burani, 2016. "Competition Between For-Profit and Non-Profit Firms: Incentives, Workers Self-Selection, and Wage Differentials," Working Papers wp1072, Dipartimento Scienze Economiche, Universita' di Bologna.
    13. Nadia Burani, 2021. "No mission? No motivation. On hospitals' organizational form and charity care provision," Health Economics, John Wiley & Sons, Ltd., vol. 30(12), pages 3203-3219, December.
    14. F. Barigozzi & N. Burani, 2013. "Bidimensional screening with intrinsically motivated workers," Working Papers wp866, Dipartimento Scienze Economiche, Universita' di Bologna.
    15. Barbara Eberth & Robert F. Elliott & Diane Skåtun, 2016. "Pay or conditions? The role of workplace characteristics in nurses’ labor supply," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(6), pages 771-785, July.
    16. Barigozzi, Francesca & Burani, Nadia & Raggi, Davide, 2018. "Productivity crowding-out in labor markets with motivated workers," Journal of Economic Behavior & Organization, Elsevier, vol. 151(C), pages 199-218.
    17. A. Fedele & P. Giannoccolo, 2013. "Moneycracy," Working Papers wp893, Dipartimento Scienze Economiche, Universita' di Bologna.
    18. F. Barigozzi & N. Burani, 2014. "Competition and Screening with Skilled and Motivated Workers," Working Papers wp953, Dipartimento Scienze Economiche, Universita' di Bologna.
    19. Barigozzi, Francesca & Parasnis, Jaai & Tani, Massimiliano, 2022. "Gender, Motivation, and Self-Selection into Teaching," IZA Discussion Papers 15532, Institute of Labor Economics (IZA).
    20. Chun-Chih Lo & Kuo-Hsuan Hsu & Shen-Chien Chen & Chin-Shiuh Shieh & Mong-Fong Horng, 2023. "Periodic Behavioral Routine Discovery Based on Implicit Spatial Correlations for Smart Home," Mathematics, MDPI, vol. 11(3), pages 1-26, January.

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