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    Can human capital theory explain why nurses are so poorly paid?

    20763_downloaded_stream_219.pdf (75.86Kb)
    Access Status
    Open access
    Authors
    Nowak, Margaret
    Preston, Alison
    Date
    2000
    Type
    Working Paper
    
    Metadata
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    Citation
    Nowak, Margaret J. and Preston, Alison C. (2000) Can human capital theory explain why nurses are so poorly paid?, Women's Economic Policy Analysis Unit (WEPAU) Discussion Paper Series: no. 00/2, Curtin University of Technology, School of Economics and Finance.
    Faculty
    Curtin Business School
    School of Economics and Finance
    School
    School of Economics and Finance
    URI
    http://hdl.handle.net/20.500.11937/38518
    Collection
    • Curtin Research Publications
    Abstract

    This paper uses Australian Census data to examine the earnings of femaleprofessionals. Comparisons are made between Registered Nurses (RNs),Teachers, Social Professionals, Health Professionals and BusinessProfessionals. Wage decompositions show that RNs earn significantly less thanother female Professionals and that the observed differentials cannot beexplained by differences in human capital endowments. The evidence presentedis strongly suggestive of monopsonist or oligopsonist power in the setting ofnurse wages ? with a manifestation being persistent labour marketdisequilibrium. Changing the relative reward structure for nurses may helpaddress the on-going nursing ?shortage? in Australia, although further researchin this area is called for.

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