The deadly consequences of labor scarcity: Evidence from hospitals

Oliver Schlenker

No 42, Working Papers from University of Konstanz, Cluster of Excellence "The Politics of Inequality. Perceptions, Participation and Policies"

Abstract: This paper estimates the impact of nursing shortages in hospitals on healthcare provision and patient outcomes by exploiting a strong and stable appreciation of the Swiss franc in 2011. Due to collective bargaining hindering wage adjustments in the German healthcare sector, cross-border wage differentials increased and led to a significant outflow of German registered nurses to Switzerland, causing a 12.5% reduction in nurse staffing rates in German hospitals near the border. Using a matched difference-in-differences approach, I find that hospitals responded by decreasing care intensity, leading to a 12% decrease in surgeries. Although hospitals are increasingly performing triage, also patients with high medical needs - such as elderly and emergency cases - face a reduction in care and, consequently, a stark increase in mortality rates, resulting in a measurable decline in regional life expectancy.

Keywords: Labor scarcity; cross-border commuting; wage differentials; nurse shortages; healthcare provision; triage; patient outcomes (search for similar items in EconPapers)
JEL-codes: F22 I11 I18 J22 J31 J61 R23 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-hea
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cexwps:306342

DOI: 10.48787/kops/352-2-1ii51x0tstwlz2

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