Presentation Title: Flexibility is the rule: Understanding monopsony for nurses and the Nurse Licensure Compact, 1999-2011

Section: Markets at the Margins II

Location: , 338

Date & Time: Friday, April 19, 2013 - 11:35am - 11:50am


The labor market for nurses is often presented as a classic example of monopsony. In monopsony, a limited number of hospitals retain market power over nurses who have high search costs, and as a result can pay lower wages than in an efficient scenario. I use data from the CPS to estimate the effects of a mobility-enhancing agreement, the Nurse Licensure Compact (NLC), on nurse wages over the past decade. Although both Registered Nurses (RNs) and Licensed Practical Nurses (LPNs) fall under its purview, I find a small wage premium for RNs lasting one year but no impact for LPNs. The effects of neighboring states enacting the policy and the distance to these states are negligible. I conclude that licensure reform is unlikely to lead to substantial reductions in monopsony in the labor market for RNs.

Type of Presentation: Individual oral

Oral presenters
Presentation Area: Economics

Presentation Topic: Policy/Politics

Arts presenters

Class Project
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Presenter Information
Presenter(s): Damron, Joseph McDonald (Joe)
Major(s): Economics
Class Year(s): 2013

Sponsor(s): Myers, Caitlin M.K.
Dept(s): Economics

Moderator: ,