New Entry and the Rate of Return to Education: The Case of Registered Nurses

Atlantic Economic Journal, Vol. 33, pp. 325-336, 2005

12 Pages Posted: 3 Aug 2011

See all articles by Surrey M. Walton

Surrey M. Walton

University of Illinois at Chicago - College of Pharmacy

Philip E. Graves

University of Colorado at Boulder - Department of Economics

Robert L. Sexton

Pepperdine University - Economics Department

Date Written: September 1, 2005

Abstract

In the 1970's, the percentage of high school graduates completing RN training increased with little change in the rate of return to training. During the 1980's this percentage declined, despite large increases in the rate of return. The national data employed here examine long-run trends (with emphasis on the 1970's and 1980's) in financial incentives and entry into the nursing profession and suggest that broader professional career opportunities in the 1980's exerted a large impact vis-a-vis the 1970's, among other factors. Rates of return remain high in the 1990's with modest signs of the market stabilizing. Successful policies to ensure stability in health care service delivery must incorporate these varying trends in the RN market.

Keywords: nursing, labor markets, wage incentives, health care policy

JEL Classification: J11, J00, J01, J18, J24

Suggested Citation

Walton, Surrey M. and Graves, Philip E. and Sexton, Robert L., New Entry and the Rate of Return to Education: The Case of Registered Nurses (September 1, 2005). Atlantic Economic Journal, Vol. 33, pp. 325-336, 2005. Available at SSRN: https://ssrn.com/abstract=1904058

Surrey M. Walton

University of Illinois at Chicago - College of Pharmacy ( email )

145 College of Pharmacy (PHARM)
833 South Wood Street
Chicago, IL 60612-7231
United States

Philip E. Graves (Contact Author)

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309-0256
United States

Robert L. Sexton

Pepperdine University - Economics Department ( email )

24255 Pacific Coast Highway
Malibu, CA 90263
United States

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