Geographically differentiated pay in the labour market for nurses
Robert F Elliott, Ada HY Ma, Anthony Scott, David Bell, Elizabeth Roberts
JOURNAL OF HEALTH ECONOMICS | ELSEVIER | Published : 2007
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.
Awarded by Chief Scientist Office