Nurses’ labour supply: effect of monetary and non-monetary job characteristics

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School of Business | Bachelor's thesis
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Date
2024
Major/Subject
Mcode
Degree programme
Taloustiede
Language
en
Pages
29
Series
Abstract
While population in developed countries is ageing and demand for health services con- tinues to increase, nursing shortage is straining the healthcare system. Policy strategies, such as pay raises and increased admissions to nursing schools, have been suggested for addressing the shortage, but the effectiveness of these policies remains ambiguous. In this thesis I conducted a literature review to study the effect of monetary and non-monetary job characteristics on registered nurses’ labour supply. I utilized the neoclassical theory of labour supply to study the choice workers make between leisure and consumption, and how to estimate labour supply elasticity. I also discussed how non-monetary job characteristics can be included in the neoclassical labour supply model. Three main findings of my thesis are the following: 1) practising nurses seem to respond poorly to monetary incentives 2) non-practising nurses could be attracted back to the profession with a pay raise 3) higher job satisfaction could reduce nurse turnover. However, further research on the topic is needed.
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Thesis advisor
Saxell, Tanja
Keywords
labour economics, registered nurses, labour supply, nursing shortage
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