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Do wages matter?: a backward bend in the 2004 California RN labor supply
Michelle Tellez1, Joanne Spetz, Jean Ann Seago
1California State University, East Bay, Concord, CA, USA. Michelle.Tellez@csueastbay.edu
Abstract:
Using data from the 2004 California Board of Registered Nursing Survey, a two-stage least-square equation was estimated to examine the effect of wages on hours worked by female registered nurses. Wages were found to have a nonlinear effect on hours worked, with a backward bending supply curve. Wages had a positive effect on the average hours worked per week up to $24.99 per hour and a negative effect between $30.00 and $100.00 per hour when compared with the wage category of $25.00 to $29.99. Results suggest that wages are important to secure the labor supply but do not increase aggregate supply beyond a wage threshold.
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