Abstract

With data obtained from married professional nurses, estimates are made of their labor supply response to changes in wage rates and in husband's earnings and to the impact of other interhousehold differences. Analysis was conducted for two time periods, and for each we estimated models to generate the probability of labor force participation and the expected amount of time worked, given participation. In contrast to the flow of labor supplied by employed married nurses, we find the participation decision is not dependent on the wage rate. Both dimensions of labor supply are dependent on husband's earnings. The results also provide strong evidence that the supply curve is backward-bending just beyond the range of our observations.

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