Monopsony power and relative wages in the labor market for nurses

Hirsch, Barry T.; Schumacher, Edward J.

doi:10.1016/0167-6296(95)00013-8

Cited by 80 publications

(51 citation statements)

References 25 publications

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“…The analysis adopts a two-step estimation procedure, based on Hirsch and Schumacher (1995), in which labor markets are the second-step unit of analysis. Similar results (not shown) are obtained using a single-step procedure with individuals as the observation unit (Hirsch and Schumacher, 2004a).…”

Section: Methods Of Analysismentioning

confidence: 99%

“…Measures include number of hospitals, RN employment, compensation costs, expenditures, patient days, and costs per patient. These data were used in Hirsch and Schumacher (1995) to construct a hospital density measure (hospitals per square mile). 18 We chose an output measure (census) rather than employment to calculate hospital concentration, since employment is a monopsonistic outcome we later examine.…”

Section: Datamentioning

confidence: 99%

“…Employers in large and small markets alike may face upward sloping supply curves and behave as oligopsonistic competitors. A third argument is that upward sloping labor supply is a necessary but not sufficient condition for monopsonistic outcomes (Hirsch and Schumacher, 1995). Although evidence may support existence of upward sloping supply facing individual employers, it need not follow that monopsonistic outcomes result.…”

Section: Introductionmentioning

confidence: 99%

“…3 Examples of the first strand are Sullivan (1989) and Staiger et al (1999) and of the second Adamache and Sloan (1982) and Hirsch and Schumacher (1995). Sullivan (1989), generally cited as finding evidence of monopsony, also can be included with the latter group since he fails to find area wage differences associated with market structure.…”

Section: Introductionmentioning

confidence: 99%

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Classic or new monopsony? Searching for evidence in nursing labor markets

Hirsch

Schumacher

2005

Journal of Health Economics

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The market for registered nurses (RNs) is often offered as an example of "classic" monopsony, while a "new" monopsony literature emphasizes that firm labor supply is upward sloping independent of market structure. Using data from multiple sources, we explore the relationship between nursing wages in hospitals and measures of classic and new monopsony. Wage level analysis fails to provide support for classic monopsony, the relative wages of RNs in 240 U.S. labor markets being largely uncorrelated with hospital system concentration. Longitudinal analysis shows nursing wages declining with increases in hospital concentration. We interpret these results as providing support for classic monopsony effects in the short run, but question whether wage effects are sustained in the long run. No relationship is found between nursing wages and a new monopsony measure of mobility, but support for new monopsony is found for women elsewhere in the labor market. RNs display greater interemployer mobility than do women (or men) in general. Two conclusions follow. First, upward sloping labor supply need not imply monopsonistic outcomes. Second, absent more compelling evidence, nursing should not be held up as a prototypical example of monopsony-classic or new.

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Section: Methods Of Analysismentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Classic or new monopsony? Searching for evidence in nursing labor markets

Hirsch

Schumacher

2005

Journal of Health Economics

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“…where i refers to the city, j the region 18 , and t the time period (t =1980, 1990, 2000, and 2010). For our main dependent and independent variables, we focus on the number of full-time employed (FTE) native and foreign RNs per capita in a city for each census year.…”

Section: Spatial Correlations Approachmentioning

confidence: 99%

Foreign Nurse Importation to the United States and the Supply of Native Registered Nurses

Cortés

Pan

2014

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Importing foreign nurses has been used as a strategy to ease nursing shortages in the United States. The effectiveness of this policy critically depends on the long-run response of nativeborn nurses. We examine how the immigration of foreign-born registered nurses (RNs) affects the occupational choice and long-run employment decisions of native RNs. Using a variety of empirical strategies that exploit the geographical distribution of immigrant nurses across U.S. cities, we find evidence of large displacement effects-over a 10-year period, for every foreign nurse that migrates to a city, between one and two fewer native nurses are employed in that city. We find similar results at the state level using data on individuals taking the nursing board exam-an increase in the flow of foreign nurses significantly reduces the number of natives sitting for licensure exams in the states that are more dependent on foreignborn nurses compared to those states that are less dependent on foreign nurses. Using data on self-reported workplace satisfaction among a sample of California nurses, we find evidence suggesting that some of the displacement effects could be driven by a decline in the perceived quality of the workplace environment. Terms of use: Documents in

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Wage policy in the health care sector: a panel data analysis of nurses' labour supply

2003

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Shortage of nurses is a problem in several countries. It is an unsettled question whether increasing wages constitute a viable policy for extracting more labour supply from nurses. In this paper we use a unique matched panel data set of Norwegian nurses covering the period 1993-1998 to estimate wage elasticities. The data set includes detailed information on 19,638 individuals over 6 years totalling 69,122 observations. The estimated wage elasticity after controlling for individual heterogeneity, sample selection and instrumenting for possible endogeneity is 0.21. Individual and institutional features are statistically significant and important for working hours. Contractual arrangements as represented by shift work are also important for hours of work, and omitting information about this common phenomenon will underestimate the wage effect.

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Monopsony power and relative wages in the labor market for nurses

Cited by 80 publications

References 25 publications

Classic or new monopsony? Searching for evidence in nursing labor markets

Classic or new monopsony? Searching for evidence in nursing labor markets

Foreign Nurse Importation to the United States and the Supply of Native Registered Nurses

Wage policy in the health care sector: a panel data analysis of nurses' labour supply

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