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The labour supply of nurses in the UK: evidence from the British Household Panel Survey

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  • Nigel Rice

Abstract

This paper investigates the determinants of the labour supply of nurses in the UK. Attention focuses on the elasticity of hours of work supplied with respect to wage rates. This is achieved using nine waves of data from the British Household Panel Survey. The panel nature of this survey allows us to control for individual unobserved heterogeneity thus reducing the problems encountered in models of labour supply caused by omitted variable bias. We account for the endogenous nature of wages by using 2- stage least squares. Tests for and control of selection bias are achieved using methods based on variable addition tests for panel data. We find that the elasticity of hours supplied with respect to wage is 0.40 suggesting that moderate increases in nurse hours supplied could be achieved by increases in wage rates.

Suggested Citation

  • Nigel Rice, 2005. "The labour supply of nurses in the UK: evidence from the British Household Panel Survey," Health, Econometrics and Data Group (HEDG) Working Papers 05/10, HEDG, c/o Department of Economics, University of York.
    • Handle: RePEc:yor:hectdg:05/10
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    Citations

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    Cited by:

    1. Hanel, Barbara & Kalb, Guyonne & Scott, Anthony, 2014. "Nurses’ labour supply elasticities: The importance of accounting for extensive margins," Journal of Health Economics, Elsevier, vol. 33(C), pages 94-112.
    2. Divine Ikenwilo & Anthony Scott, 2007. "The effects of pay and job satisfaction on the labour supply of hospital consultants," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1303-1318.
    3. Bob Elliott, 2003. "Labour markets in the NHS: an agenda for research," Health Economics, John Wiley & Sons, Ltd., vol. 12(10), pages 797-801, October.
    4. 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.
    5. David Ulph, 2020. "The Drivers of the Nursing Workforce Gap: a Theoretical Framework," Discussion Paper Series, School of Economics and Finance 202005, School of Economics and Finance, University of St Andrews, revised 11 Sep 2020.
    6. Divine Ikenwilo & Anthony Scott, 2007. "The effects of pay and job satisfaction on the labour supply of hospital consultants," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1303-1318, December.

    More about this item

    Keywords

    Nurses; Labour supply; Wages; Panel data.;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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