Labor Market Research: Calculating Nursing Wages

This authorship will explore cardinal of Mankiws (2001) ten principles of economics (p. 3) and how these apply to the labor food market for nurses. The wall newspaper will briefly discuss the two principles a) No. 1 People flavour Tradeoffs, (p. 4-5) and b) No. 7 Governments Can Sometimes amend Market Outcomes (p. 11). Afterwards, the paper will discuss how the State of smart York calculates nursing wages considering the two principles.First, the said discussion will identify the factors that could influence the put out and take in for nurses. Second, it will discuss how a nurses pay is headstrong and how the salary is structured. Third, it will provide recommendations on how the State of New York good deal increase its supply of nurses. Finally fourth, it will summarize how Mankiws two principles basically apply to the labor market for nurses.The two economic principles this paper centers on belong to Nicholas Gregory Mankiw, chairman of President Bushs Council of spar ing Advisers from 2003 to 2005. Principle No. 1, People Face Tradeoffs, refers to the situation when people take away to choose one activity or thing over another(prenominal) (p. 4-5). This principle assigns that peoples choices advert might and equity (p. 5). Mankiw defines efficiency as how huge the pie people create or essentially the wealth that a confederation produces trance equity is how the pie is divided or the redistribution of the wealth that the society has created (p. 5).Meanwhile Principle No. 7, Governments Can Sometimes Improve Market Outcomes, refers to the imperfect actions of establishment to curb a societys efficiency and equity (p. 11). Government actions can result to market hardship due to externalities and market power (p. 11). On one hand, externalities can both be good or bad (p. 11). It refers to the unintended results of a exceptional action in pursuing a certain purpose (p. 11). On the other hand, market power refers to the influence of a per son, sector, or society due to limited supply or groovy accept on a particular thing or service (p. 11).Speaking of service, this paper will next explore the nursing service in the state of New York, then in the entire U.S.A. beer maker and Kovner (2000) identified several(prenominal) factors that influence the supply for nurses in New York. According to the two authors, the factors that affect supply atomic number 18 a) negative real wage growth from 1989 to 1996 b) change magnitude admissions and enrollments in nursing programs c) decrease in licensed nurses and d) aging and seclusion of registered nurses or RNs. Meanwhile, the U.S. Department of wellness and Human service (2003) identified the side by side(p) factors that influence the continuing decline of nursing graduates nationwide a) increasing professional opportunities for women startside nursing b) stagnant pay and more onerous working(a) conditions for many in nursing and c) a decline in pubic perception of the attractiveness of the nursing profession.For the demand-side, the U.S. Department of Health and Human work noted that The U.S. Census Bureau projects a rapid increase in the elderly population starting around 2010 when the leading edge of the bobble boom generation approaches age 65. Hence, the department concludes the rapid growth in demand for nursing services is especially pronounced for long-term help settings that predominantly provide c atomic number 18 to the elderly.Next in the discussion are a) how a nurses pay is determined, and b) how the salary is structured. Brewer and Kovner (2000) pointed out that Hospitals are having significant difficulty financially due to the Balanced calculate Act and state legislation. The authors also concluded Funding changes that effect infirmary financial viability will significantly influence the balance of supply and demand. Moreover, Brewer and Kovner (2000) observed and opined Current shortages are relatively localized and moderate in severity, and if hospitals achieve sufficient financial relief politically they may abate.With these evidences, government essentially determines a nurses pay. As for how RN salaries are structured, Brewer and Kovner (2000) suggested that a) great demand versus limited supply b) experience c) vary skills and d) regional demand variations led to 1) ease with which new graduates are finding employment 2) organizations offering sign-on bonuses 3) anecdotal and news reports 4) focus group reports, and 5) surveys of employers which advert difficulty hiring RNs. The said factors essentially determine how RN salaries are structured.Thirdly, due to the factors previously identified and discussed, this paper recommends that the State of New York increase its supply of nurses thru a) recruitment of RNs from abroad, and b) encouragement of retirement homes abroad in countries with sufficient supply of RNs that are acceptable to the U.S. or those that can comply with U.S. standards.Finall y, this paper notes that Mankiws first and seventh principles have a profound effect on the supply and demand of nurses, RN pay, and RN salary structures. One, based on the data previously discussed, the U.S. shortage in RNs could be attributed to two major(ip) factors a) State legislation and the Federal governments Balanced cipher Act which essentially reduced the RN supply, and b) the retirement of baby boomers and their great demand for health care.Note that both factors relate to government policies or decisions. Specifically, Roosevelts New Deal triggered the baby boom generation while Reagan pushed for the Balanced Budget Act. Two, due to the said government policies which were intended to manage efficiency and equity, the U.S. DHHS observed that people made choices that affected the supply and demand for nurses. This trend shows how positive and negative externalities came into play and determined the current market power of RNs.ReferencesBrewer, C.S. & Kovner, C. (2000). A bstract An Evaluation of the Supply and Demand of Registered Nurses in New York State. Gateway, National Library of Medicine. Retrieved July 14, 2007Mankiw, G. (2001). Ten Principles of Economics. Principles of Microeconomics Second Edition. Fort Worth, TX Harcourt College Publishers. pp. 3-15.U.S. Department of Health and Human Services. (2003). What is Behind HRSAs Projected Supply, Demand, and Shortage of Registered Nurses? Health Resources and Services Administration. Retrieved July 14, 2007