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Will Increased Wages Reduce Shortage of Nurses? A Panel Data Analysis of Nurses' Labor Supply

Author

Listed:
  • Jan Erik Askildsen

    (University of Bergen)

  • Badi H. Baltagi

    (Texas A&M University)

  • Tor Helge Holmås

    (University of Bergen)

Abstract

Shortage of nurses is a problem in several countries. It is an unsettled question whether increasing wages constitute a viable policy for extracting more labor supply from nurses. In this paper we use a unique matched panel data set of Norwegian nurses covering the period 1993-1997 to estimate wage elasticities. This data includes detailed information on 18,066 individuals over 5 years totaling 56,832 observations. The estimated elasticity when controlling for individual and time invariant fixed effects is significantly positive but not very high in magnitude. Individual and institutional features are significant and important for working hours. We have also access to information about contractual arrangements. It turns out that shift work is important for hours of work, and that omitting information about this common phenomenon will underestimate the wage effect.

Suggested Citation

  • Jan Erik Askildsen & Badi H. Baltagi & Tor Helge Holmås, 2002. "Will Increased Wages Reduce Shortage of Nurses? A Panel Data Analysis of Nurses' Labor Supply," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 D1-2, International Conferences on Panel Data.
    • Handle: RePEc:cpd:pd2002:d1-2
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    File URL: http://econpapers.repec.org/cpd/2002/88_Holmas.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. 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.
    2. 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.
    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. Paul Frijters & Michael A. Shields & Stephen Wheatley Price, 2007. "Investigating the quitting decision of nurses: panel data evidence from the british national health service," Health Economics, John Wiley & Sons, Ltd., vol. 16(1), pages 57-73, January.
    5. Dolado, Juan J & Felgueroso, Florentino, 2008. "Occupational Mismatch and Moonlighting Among Spanish Physicians: Do Couples Matter?," CEPR Discussion Papers 6803, C.E.P.R. Discussion Papers.
    6. Badi H. Baltagi & Espen Bratberg & Tor Helge Holmås, 2005. "A panel data study of physicians' labor supply: the case of Norway," Health Economics, John Wiley & Sons, Ltd., vol. 14(10), pages 1035-1045, October.
    7. Leif Andreassen & Maria Laura Tommaso & Steinar Strøm, 2017. "Nurses and physicians: a longitudinal analysis of mobility between jobs and labor supply," Empirical Economics, Springer, vol. 52(4), pages 1235-1269, June.
    8. Egon Smeral & Peter Huber & Ulrike Famira-Mühlberger & Gerhard Schwarz, 2009. "Ausbildungserfordernisse und Arbeitskräftebedarf im österreichischen Beherbergungs- und Gaststättenwesen," WIFO Monatsberichte (monthly reports), WIFO, vol. 82(4), pages 247-259, April.
    9. Diane Skåtun & Emanuela Antonazzo & Anthony Scott & Robert Elliott, 2005. "The supply of qualified nurses: a classical model of labour supply," Applied Economics, Taylor & Francis Journals, vol. 37(1), pages 57-65.

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    More about this item

    Keywords

    Nurses; labor supply; panel data; selection;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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