Will Increased Wages Reduce Shortage of Nurses? A Panel Data Analysis of Nurses’ Labour Supply

Jan Erik Askildsen, Badi Baltagi and Tor Helge Holmås ()
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Tor Helge Holmås: Programme for Health Economics in Bergen, Department of Economics, University of Bergen, Postal: Hermann Fossgt. 6, N-5007 Bergen, Norway

No 21/02, Working Papers in Economics from University of Bergen, Department of Economics

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 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.

Keywords: Nurses; labour supply; panel data; selection; semi-parametric models. (search for similar items in EconPapers)
JEL-codes: I10 J22 J44 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2002-10-15
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Will Increased Wages Reduce Shortage of Nurses? A Panel Data Analysis of Nurses’ Labour Supply (2002)
Working Paper: Will Increased Wages Reduce Shortage of Nurses? A Panel Data Analysis of Nurses' Labor Supply (2002)
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