Scandinavian Working Papers in Economics
Memorandum,
Oslo University, Department of Economics
No 08/2008: Nurses Wanted: Is the Job Too Hars or is the Wage Too Low
M. L. Di Tommaso (), Steinar Strøm () and Erik Magnus Sæther ()
Additional contact information
M. L. Di Tommaso: University of Turin, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Steinar Strøm: University of Turin, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Erik Magnus Sæther: PriceWaterhouseCoopers, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Abstract: When entering the job market, nurses choose among different kind of jobs. Each of these jobs is characterized by wage, sector (primary care or hospital) and shift (daytime work or shift). This paper estimates a multisector-job-type random utility model of labor supply on data for Norwegian registered nurses in 2000. The empirical model implies that labor supply is rather inelastic; 10 percent increase in the wage rates for all nurses is estimated to yield 3.3 percent increase in overall labor supply. This modest response shadows for much stronger inter job-type responses. Our approach differs from previous studies in two ways: First, to our knowledge, it is the first time that a model of labour supply for nurses is estimated taking explicitly into account the choices that RN’s have regarding work place and type of job. Second, it differs from previous studies with respect to the measurement of the compensations for different types of work. So far, it has been focused on wage differentials. But there are more attributes of a job than the wage. Based on the estimated random utility model we therefore calculate the expected value of compensation that makes a utility maximizing agent indifferent between types of jobs, here between shift work and daytime work. It turns out that Norwegian nurses working shifts may be willing to work shift relative to daytime work for lower wage than the current one.
Keywords: Nurse labor supply: multi-sector; shift-work
37 pages, March 27, 2008
Full text files
Memo-08.2008.pdf
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