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Hospital staffing and local pay: an investigation into the impact of local variations in the competitiveness of nurses’ pay on the staffing of hospitals in France

Author

Listed:
  • Simon Jean-Baptiste Combes

    (Institute for Research and Information in Health Economics, ARENES - Arènes: politique, santé publique, environnement, médias - UR - Université de Rennes - Institut d'Études Politiques [IEP] - Rennes - EHESP - École des Hautes Études en Santé Publique [EHESP] - UR2 - Université de Rennes 2 - CNRS - Centre National de la Recherche Scientifique, EHESP - École des Hautes Études en Santé Publique [EHESP], SHS - Département des sciences humaines et sociales - EHESP - École des Hautes Études en Santé Publique [EHESP])

  • Eric Delattre

    (THEMA - Théorie économique, modélisation et applications - UCP - Université de Cergy Pontoise - Université Paris-Seine - CNRS - Centre National de la Recherche Scientifique, UCP - Université de Cergy Pontoise - Université Paris-Seine)

  • Bob Elliott

    (University of Aberdeen, Health Economics Research Unit - University of Aberdeen)

  • Diane Skåtun

    (Health Economics Research Unit - University of Aberdeen, University of Aberdeen)

Abstract

Spatial wage theory suggests that employers in different regions may offer different pay rates to reflect local amenities and cost of living. Higher wages may be required to compensate for a less pleasant environment or a higher cost of living. If wages in a competing sector within an area are less flexible and therefore less competitive this may lead to an inability to employ staff. This paper considers the market for nursing staff in France where there is general regulation of wages and public hospitals compete for staff with the private hospital and non-hospital sectors. We consider two types of nursing staff, registered and assistant nurses and first establish the degree of spatial variation in the competitiveness of pay of nurses in public hospitals. We then consider whether these spatial variations are associated with variation in the employment of nursing staff. We find that despite regulation of pay in the public and private sector, there are substantial local variations in the competitiveness of nurses' pay. We find evidence that the spatial variations in the competitiveness of pay are associated with relative numbers of assistant nurses but not registered nurses. While we find the influence of the competitiveness of pay is small, it suggests that nonpay conditions may be an important factor in adjusting the labour market as might be expected in such a regulated market.

Suggested Citation

  • Simon Jean-Baptiste Combes & Eric Delattre & Bob Elliott & Diane Skåtun, 2015. "Hospital staffing and local pay: an investigation into the impact of local variations in the competitiveness of nurses’ pay on the staffing of hospitals in France," Post-Print hal-02524237, HAL.
    • Handle: RePEc:hal:journl:hal-02524237
    DOI: 10.1007/s10198-014-0628-y
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    2. Rowena Crawford & Richard Disney, 2018. "Wage Regulation and the Quality of Police Applicants," Economica, London School of Economics and Political Science, vol. 85(340), pages 701-734, October.
    3. Martin, Cécile, 2014. "Concurrence, prix et qualité de la prise en charge en EHPAD en France : Analyses micro-économétriques," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/13712 edited by Dormont, Brigitte.

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    More about this item

    Keywords

    Wage regulation; Local pay; Standardised spatial wage differentials; Nursing shortage; Nursing labour supply;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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