Hospital staffing and local pay: an investigation into the impact of local variations in the competitiveness of nurses’ pay on the staffing of hospitals in France

Abstract

Spatial wage theory suggests that employers in different regions may offer different pay rates to reflect local amenities and cost of living. Higher wages may be required to compensate for a less pleasant environment or a higher cost of living. If wages in a competing sector within an area are less flexible and therefore less competitive this may lead to an inability to employ staff. This paper considers the market for nursing staff in France where there is general regulation of wages and public hospitals compete for staff with the private hospital and non-hospital sectors. We consider two types of nursing staff, registered and assistant nurses and first establish the degree of spatial variation in the competitiveness of pay of nurses in public hospitals. We then consider whether these spatial variations are associated with variation in the employment of nursing staff. We find that despite regulation of pay in the public and private sector, there are substantial local variations in the competitiveness of nurses' pay. We find evidence that the spatial variations in the competitiveness of pay are associated with relative numbers of assistant nurses but not registered nurses. While we find the influence of the competitiveness of pay is small, it suggests that nonpay conditions may be an important factor in adjusting the labour market as might be expected in such a regulated market.

Erwerbsverläufe und Einkommensentwicklung in der Pflege

“…Eine erst kürzlich veröffentlichte Studie von Kugler (2022) Bezogen auf diese Fragestellung findet sich eine deutliche Forschungslücke in der Literatur. So liegen, neben Studien zum Zusammenhang zwischen dem Lohn und der Attraktivität der Arbeit in der Pflege (siehe oben), einerseits Untersuchungen zur Lohnbildung auf diesem Teilarbeitsmarkt vor (Heyes, 2005;Elliott et al, 2007;Combes et al, 2015;Combes et al, 2018). Andererseits analysieren einige Studien die Übergänge zwischen verschiedenen Phasen im Arbeitsleben von Pflegekräften, im Speziellen den Berufs-und Jobausstieg (Holmås, 2002;Frijters et al, 2007;Kankaanranta und Rissanen, 2008;Kroczek, 2021)…”

Wage Regulation and the Quality of Police Applicants

“…() examine the impact of outside pay differentials on local vacancy rates for nurses in the UK's National Health Service, while Combes et al . () undertake a similar exercise for French hospital workforces. However, it should be noted that there is no shortage of recruits to the police service in England and Wales; it is the quality of recruits that is the primary issue here.…”