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Title: The Wage and Job Impacts of Hospitals on Local Labor Markets

Citation Type: Journal Article

Publication Year: 2017

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Abstract: This study examines the impact of hospitals on local labor markets in rural and urban counties. We measure the ability of hospitals, particularly in rural communities, to attract nonhealth-related employment and provide higher wage jobs to residents based on their education level. Results find hospital employees with an associates degree can expect a 21.4% wage premium, when compared with alternative opportunities, and those with a bachelors degree can earn 12.2% more working in a hospital. Hospitals are shown to be positively related to overall employment as well as exhibit positive employment spillover. For rural counties, a short-term general hospital is associated with 559 jobs in the county, 60 of which are hospital based and 499 are nonhealth care related. With the positive benefits on wages and nonhealth care job growth, hospitals have measurable positive labor market outcomes above their primary objective of providing health care access, particularly in rural counties.

Url: http://journals.sagepub.com/doi/abs/10.1177/0891242417691609

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Authors: Mandich, Anne M; Dorfman, Jeffrey H

Periodical (Full): Economic Development Quarterly

Issue: 2

Volume: 31

Pages: 139-148

Data Collections: IPUMS USA

Topics: Health, Labor Force and Occupational Structure

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