Date of this Version

September 1990

Document Type

Discussion Paper

Publication Details

Julia Lane and LaVonne Straub (1990) A Renewed Nurse Market Shortage Hospital Monopsony Alive and Well

Presented at Eastern Economic Association Meetings, March 1990.

School of Business Discussion Paper ; No. 6, Sep. 1990

© Copyright Julia Lane, LaVonne Straub and the School of Business, Bond University


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.