Monopsony power and relative wages in the labor market for nurses
Journal of Health EconomicsPublished 1 October 1995
Barry T. Hirsch, Edward J. Schumacher
Citations115
SJR quartileQ1
SJR score2.43
SNIP1.65
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TL;DR
No positive relationship exists between relative nursing wages and hospital density or market size, and support is found for the presence of monopsony power based on evidence on union wage premiums, slopes of experience profiles, or the mix of RN to total hospital employment.
Abstract
This paper examines the thesis that monopsony power is an important determinant of wages in nursing labor markets. Using data from the 1985-93 Current Population Surveys, measures of relative nurse/non-nurse wage rates for 252 labor markets are constructed. Contrary to predictions from the monopsony model, no positive relationship exists between relative nursing wages and hospital density or market size. Nor is support found for the presence of monopsony power based on evidence on union wage premiums, slopes of experience profiles, or the mix of RN to total hospital employment.
Keywords
Social SciencesHealth ProfessionsEconomics, Econometrics and Finance
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