Why are hospital nurses paid more
An analysis of the article: Compensating differentials and unmeasured ability in the labor market for nurses: why do hospitals pay more? It is known that nearly seventy percent of nurses are employed by hospitals. Evidence suggests that nurses employed in this area receive a higher compensating wage differential. ... So, the question remains: why do these compensating wage differentials exist? ... The alternate employment would refer to nurses employed in non-hospital sectors such as nursing homes and physician offices. ... It was found that hospital nurses receive 17% higher wages than non-hospital workers. ... 8% higher wages than nurses who work in physician offices and 20. ... One explanation considers that hospitals will demand, attract and retain nurses of higher quality, thus offering higher wages. ... Hospital nurses exhibited a score of 67.8, while non-hospital nurses exhibited a score of 54. ... By analyzing wage changes in nurses switching between hospitals and non-hospital sectors, the authors find that differences are due primarily to ability differences that are nurse-specific. Also, by looking at injury rates within the industry, hospital environments are relatively high risk.