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The Impact of Hospitals on Local Labor Markets: Going Beyond IMPLAN

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  • Mandich, Anne M.
  • Dorfman, Jeffrey H.

Abstract

This study examines the impact of hospitals on local labor markets in rural and urban counties. We measure the ability of hospitals, particularly in rural communities, to attract non-health related employment and provide higher wage jobs to residents based on their education level. Results find hospital employees with an associate’s degree can expect a 21.4% wage premium, when compared to alternative opportunities, and those with a bachelor’s degree can earn 12.2% more working in a hospital. Hospitals are shown to be positively related to overall employment as well as exhibit positive employment spill-over. For rural counties, a short-term general hospital is associated with 599 jobs in the county; 60 of which are hospital based and 499 are non-healthcare related. With the positive benefits on wages and non-healthcare job growth, hospitals have measurable positive labor market outcomes above their primary objective of providing health care access, particularly in rural counties.

Suggested Citation

  • Mandich, Anne M. & Dorfman, Jeffrey H., 2014. "The Impact of Hospitals on Local Labor Markets: Going Beyond IMPLAN," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169791, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:169791
    DOI: 10.22004/ag.econ.169791
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    References listed on IDEAS

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