Hospital staff shortage: the role of the competitiveness of pay of different groups of nursing staff on staff shortage

Jean-Baptiste Combes (Corresponding Author), Robert Francis Elliott, Diane Skatun

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Abstract

Shortages of nursing staff in OECD countries have been a preoccupation for policy makers. Shortages of staff may be the consequence of uncompetitive pay. In the private sector, employers in different regions can offer different pay rates
to reflect local amenities and cost of living. Hospitals in the UK however cannot set the pay for their employees, and as a result they might therefore incur staff shortages. Moreover, occupational groups do not operate in isolation. Shortages
of staff may also be the consequence of the competitiveness of pay of an alternative group of staff. This is investigated using two distinct groups of nursing staff: assistant nurses and registered nurses working in English hospitals in 2003-5 using national-level data-sets. We find that an increase by 10% of the pay competitiveness of registered nurses decreases the shortage of both the registered nurses and of assistant nurses by 0.6% and 0.4% respectively.
Original languageEnglish
Pages (from-to)6547-6552
Number of pages6
JournalApplied Economics
Volume50
Issue number60
Early online date9 Jul 2018
DOIs
Publication statusPublished - 31 Jul 2018

Keywords

  • wage regulation
  • local pay
  • standardised spatial wage differentials
  • shortage of staff
  • nurses
  • pay competitiveness
  • labour substitution

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