Working Paper: NBER ID: w3031
Authors: Daniel Sullivan
Abstract: Estimates are presented of the inverse elasticity of supply of nursing services to the individual hospital, a quantity which is a natural measure of employer market power. The estimates corresponding to employment changes taking place over one year are quite high (in the neighborhood of 0.79) and even for changes taking place over three years are substantial (in the neighborhood of 0.26). The estimates do not significantly differ for hospitals in major metropolitan areas and do not depend very sensitively on the assumed form of the oligopsony equilibrium.
Keywords: monopsony; nursing labor market; employer market power
JEL Codes: J31; J42
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| elasticity of supply facing hospitals (I11) | employment levels (J23) |
| employment levels (J23) | wages (J31) |
| elasticity of supply depends on time period considered (J22) | elasticity of supply (J20) |