Nursing "Shortages": Monopsony Power in the Market for Registered Nurses?
In the labor market for Registered nurses, Monopsony power may contribute to the apparent shortages of Registered nurses. Monopsony occurs where there is one major employer and many workers seeking to gain employment. Many reasons could be there for such distortions, like, workers are paid less than their marginal revenue product. Also, firms with monopsony power often have a degree of monopoly selling power. This enables them to make high profits at the expense of consumers and workers. And, less care is taken about working conditions because workers don’t have many alternatives to the main firm.
Nursing shortage is a major problem in the United States and there is always a high demand regardless of what state comes to mind when we think of nursing shortages. The problem is that the patients that are in need and require the staff of a nurses are the ones to suffer along with the nurses as well. When it comes to the issue of monopsony power regarding the market for registered nurses there is so much that we could talk about.
Monopsony Power occurs when there is one main facility and many individuals are looking to be
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Meaning the larger the hospital the less monopsony power is involved because there is a lot more to offer when it comes to the supply and demand, more supply and less demand of nurses compared to the smaller hospitals with no competition in the local areas, so the demand is higher for the nursing staff. The larger hospitals will pay more to the nursing staff compared to the smaller hospitals that pay less due the higher demand and less population in the area, this is where the monopsony power takes a great effect on the