Relative wages and exit behavior among registered nurses

Article Abstract:

I examine the exit decision of registered nurses using the longitudinal data files generated by the March Current Population Surveys (CPS) from 1983 through 1994. By examining the wages of workers outside of nursing, a measure of the reservation wage is constructed and related to the decision to leave nursing, either for an alternative job or to exit employment. My results indicate that nurses respond to outside wage opportunities. A one standard deviation decrease in the difference between the actual and predicted log wage results in an 8 percent increase in the exit of nurses. Secretaries, however, are shown to have a much greater sensitivity to outside wages due to the lower degree of occupation-specific training required for secretarial jobs. A similar increase in the wage gap for secretaries results in an 18 percent increase in turnover. RNs employed in hospitals, covered by a union contract, and employed in the public sector are relatively attached to the nursing profession. (Reprinted by permission of the publisher.)

Offices of All Other Miscellaneous Health Practitioners, Offices of health practitioners, not elsewhere classified, Nurses, Research, Case studies, Appointments, resignations and dismissals, Medical personnel, Wage payment systems, Employee turnover

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On the interpretation of age-earnings profiles

Article Abstract:

Many economists use cross-sectional age-earnings profiles to describe the course of earnings over the worklife of the average worker. We argue that such an interpretation is not typically correct. After citing numerous examples of such erroneous interpretations from the literature, we explain why cross-sectional profiles fail to accurately portray longitudinal earnings profiles and show how different the two sets of profiles can be. (Reprinted by permission of the publisher.)

Statistics, Demographic aspects, Wages, Wages and salaries, Age, Age (Biology)

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