Geographically differentiated pay in the labour market for nurses



Elliott RF, Ma A, Scott A, Bell D & Roberts JE (2007) Geographically differentiated pay in the labour market for nurses. Journal of Health Economics, 26 (1), pp. 190-212.

This novel application of spatial wage theory to health service labour markets analyses the competitiveness of nurse's pay and how this differs between local labour markets in Britain. A switching regression model is estimated to derive standardised spatial wage differentials (SSWDs) for nurses and their comparators. An SSWD gap is constructed and its relationship to vacancies estimated. A reduction in the gap in a local area is shown to result in an increase in the long-term vacancy rate for National Health Service (NHS) nurses. The competitiveness of nursing pay is shown to have a strong effect on the ability of the NHS to attract and retain nurses.

ABILITY; Britain; Health; Labour; LONG-TERM; market; MARKETS; model; National Health Service; Nurses; Nursing; reduction; Regression; relationship; service; Spatial; Spatial wage differentials; Theories; THEORY; Vacancies; WAGE; WAGE differentials

Journal of Health Economics: Volume 26, Issue 1

Publication date31/01/2007
Publication date online10/07/2006