From state to state, wages in the profession of nursing vary. There are many different things that can play a part in stage wages which make them differ. However, this paper will focus on the labor market for the nurses in the state of California. I will address the factors that affect labor supply and demand in this labor market. Secondly, I will determine how wages are determined and the salary structure for a nurse. Finally, I will determine what the state of California can do to increase the supply of nurses.
Supply and Demand Factors
There are many factors that affect supply and demand in the labor market for nurses. California has a high demand for nurses and there a couple of obvious factors that have caused this high demand. In 2004 California passed a law requiring hospitals to have a nurse to patient ratio of one to five (Rickles, n.d.). This factor of legislation consequently increased the demand for nurses in California. In addition to this new law the increasing population in California also increases the demand for nurses in the state because as more people seek medical care more nurses are demanded (Rickles, n.d.).
The factors that affect supply in the labor market for nurses are not as specific to California but are factors that affect many states. For instance one factor that affects supply is the time it takes to get the education needed to become a nurse. The fact that the nursing profession requires a license makes this profession more restricted than others (Rickles, n.d.). This factor relates to the first principle of economics which is "people face tradeoffs" (Mankiw, 2004). Some people may not enter nursing programs because they may decide that they could make more money if they worked full-time rather than working part-time and going to school part-time. Additionally, many nursing programs do not have much space available in classes causing these programs to reject qualified applicants (Institute for Women's Policy Research,... [continues]
Supply and Demand Factors
There are many factors that affect supply and demand in the labor market for nurses. California has a high demand for nurses and there a couple of obvious factors that have caused this high demand. In 2004 California passed a law requiring hospitals to have a nurse to patient ratio of one to five (Rickles, n.d.). This factor of legislation consequently increased the demand for nurses in California. In addition to this new law the increasing population in California also increases the demand for nurses in the state because as more people seek medical care more nurses are demanded (Rickles, n.d.).
The factors that affect supply in the labor market for nurses are not as specific to California but are factors that affect many states. For instance one factor that affects supply is the time it takes to get the education needed to become a nurse. The fact that the nursing profession requires a license makes this profession more restricted than others (Rickles, n.d.). This factor relates to the first principle of economics which is "people face tradeoffs" (Mankiw, 2004). Some people may not enter nursing programs because they may decide that they could make more money if they worked full-time rather than working part-time and going to school part-time. Additionally, many nursing programs do not have much space available in classes causing these programs to reject qualified applicants (Institute for Women's Policy Research,... [continues]
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