Comment on Hospital Market Structure and the Reture to Nurs

Comment on Hospital Market Structure and the Reture to Nurs

A recent paper by Booton and Lane (1985) may be seriously flawed. The study attempted to evaluate the hypothesis that hospitals exercise monopsony power in the market for nurses by treating nurses with baccalaureate degrees as inputs equivalent to nurses with 2-year associate degrees. Since they are...

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Veröffentlicht in:The Journal of human resources 1987-10, Vol.22 (4), p.607
Hauptverfasser: Lehrer, Evelyn L, White, William D, Straub, LaVonne A, Lane, Julia
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Sprache:eng
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Associate Degrees
Hospitals
Labor supply
Monopsony
Nurses
Regression analysis
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container_issue 4
container_start_page 607
container_title The Journal of human resources
container_volume 22
creator Lehrer, Evelyn L
White, William D
Straub, LaVonne A
Lane, Julia
description A recent paper by Booton and Lane (1985) may be seriously flawed. The study attempted to evaluate the hypothesis that hospitals exercise monopsony power in the market for nurses by treating nurses with baccalaureate degrees as inputs equivalent to nurses with 2-year associate degrees. Since they are treated as cheap skilled labor, the nurses with baccalaureate degrees frequently leave the nursing profession. With regard to the empirical analysis, including type of position held in the right-hand side of the wage equation is inappropriate because type of position is not an exogenous variable. Also, a variable is included that leads to perfect collinearity among the right-hand variables and that should cause the regression to fail. Lehrer and White respond that, while the latter comment is valid, correcting the model makes the original results more compelling. The use of hospital position as an exogenous variable is appropriate and consistent with the thesis that hospitals use all nurses as homogenous inputs.
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subjects Associate Degrees
Hospitals
Labor supply
Monopsony
Nurses
Regression analysis
title Comment on Hospital Market Structure and the Reture to Nurs
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