The Roller Coaster Supply of Registered Nurses: Lessons from the Eighties

The strong labor demand of the eighties for nurses has evaporated under reform proposals and cost constraints. In this study, the 1984 and 1988 National Sample Surveys of Registered Nurses (NSSRN) were used to examine the labor supply of nurses. Ordinary least squares and logistic regression analyses indicated that the responsiveness of registered nurses to the wage was greater than previous research has indicated. If wage growth is slow relative to other occupations due to a decreased demand for nurses, registered nurses will in turn reduce their supply of labor more than previous research has indicated. Whether the response by nurses will balance the reduction of demand by employers remains to be seen.