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Participation in the nurse market is analyzed by developing a model which generates the discounted value of RN lifetime earnings. Nurse wages are compared with those for comparable females to develop a wage-based index which is considered a measure of hospital monopsony power. Hospital statistics and Current Population Survey data are used to test the model. Results suggest such a wage profile measure is superior to using current wage in supply equations. The measure of hospital labour market power appears to be a better indicator of monopsony than product market measures.