Table 5.5:  Estimates of Relative Demand for Licensed Practical/Vocational Nurses

 

OLS (s.e.)

Fixed Effects (s.e.)

Fixed Effects, Instrumenting for LPN Wages (s.e.)

log (LPN Wage)

-0.055

(0.041)

 0.019**

(0.006)

-0.126**

(0.055)

log (RN Wage)

0.098**

(0.045)

 0.039**

(0.007)

 0.046**

(0.007)

log (Nurse Aide Wage)

-0.234**

(0.056)

-0.024**

(0.006)

-0.012

(0.008)

 

log (Inpatient Days)

-0.016**

(0.005)

-0.002

(0.002)

-0.002

(0.002)

log (Length of Stay)

 0.027**

(0.004)

 0.016**

(0.002)

 0.016**

(0.002)

Case Mix

-0.070**

(0.013)

-0.006

(0.005)

-0.006

(0.005)

Technology (Saidin Index)

-0.004**

(0.001)

-0.001**

(0.000)

-0.001**

(0.000)

 

log (Medicaid Share of Inpatient Days)

 0.007**

(0.003)

 0.005**

(0.001)

 0.005**

(0.001)

For Profit Hospital

 0.027**

(0.008)

 0.015**

(0.003)

 0.017**

(0.003)

District Hospital

 0.040**

(0.010)

 0.022**

(0.004)

 0.023**

(0.004)

Government (State or local) Hospital

 0.020*

(0.010)

 0.024**

(0.003)

 0.024**

(0.003)

 

Number of HMOs Operating in County

-0.003**

(0.001)

-0.002**

(0.000)

-0.002**

(0.000)

HMO Penetration

-0.070**

(0.027)

-0.020**

(0.007)

-0.017**

(0.007)

No. of HMOs  X  HMO Penetration

 0.005*

(0.003)

 0.004**

(0.001)

 0.003**

(0.001)

 

Per Capita Income in County

-0.000002**

(0.000)

 0.000001**

(0.000)

-0.000001**

(0.000)

 

Percentage of LPNs Unionized in State

 0.014

(0.022)

 0.006*

(0.003)

 0.006*

(0.003)

Percentage of RNs Unionized in State

 0.004

(0.044)

 0.001

(0.007)

-0.005

(0.007)

 

1991

-0.008**

(0.004)

-0.009**

(0.002)

-0.005**

(0.002)

1992

-0.021**

(0.005)

-0.024**

(0.002)

-0.018**

(0.003)

1993

-0.033**

(0.006)

-0.036**

(0.002)

-0.030**

(0.003)

1994

-0.030**

(0.007)

-0.038**

(0.002)

-0.032**

(0.003)

1995

-0.021**

(0.007)

-0.040**

(0.002)

-0.035**

(0.003)

1996

-0.022**

(0.007)

-0.049**

(0.002)

-0.044**

(0.003)

1997

-0.012

(0.007)

-0.049**

(0.002)

-0.044**

(0.003)

1998

-0.009

(0.009)

-0.057**

(0.002)

-0.049**

(0.004)

1999

-0.008

(0.010)

-0.063**

(0.003)

-0.052**

(0.005)

2000

-0.010

(0.010)

-0.071**

(0.003)

-0.058**

(0.005)

 

R-Squared

0.378

0.098

0.181

N

43,289

43,204

43,186

*p < 0.10
**p < 0.05

Notes: (1) the dependent variable is log (LPNs as a Proportion of Total Licensed Nurse Staff) (2) all regressions include a constant; and (3) OLS regression uses the cluster (on State) option in Stata.

Sources: American Hospital Association Annual Survey of Hospitals, Current Population Survey Outgoing Rotation Group Files, and Area Resource File.  Managed care data courtesy of Douglas R. Wholey.