An examination of the intensity of supervision in the workplace and its effect on the pay of nonsupervisory employees through the use a wage survey of the hospital industry.Wages ; Medical care, Cost of

Alan B. Krueger

Erica L. Groshen

English

Research Papers in Economics

A Range Theory of Wage Differentials,&quot;

An Empirical Investigation of Intra-Urban Wage Gradients,&quot;

Carrots and Sticks: Pay Supervision, and Turnover,&quot;

Department of Labor, Industry Wage Survev: Hospitals (Bureau of Labor Statistics, Bulletin 2142,

Estimates of Monopsony Power in the Market for Hospital Workers,&quot;

for an early statement of the &quot;range theory of wage differentials.&quot; For example, Rees and Shultz

For further details on the original survey, see Industrv Wave Survey: HosD~~~~s (US Dept. of Labor,

Human Resource Mana~ement and Industrial Relations

Industry and Occupation Wage Patterns and Theories of Wage Determination,&quot; unpublished,

Kochan and Barocci

l2 We ignore issues concerning monopsony power, which might be relevant in the labor market for nurses (see Sullivan,

Organizational Control and the Economic Efficiency of Hospitals: The Production of Nursing Services,&quot;

Other researchers have found a similar pattern at the industry level. For instance, Dickens and Katz

Personnel Administration (New York:

Personnel Policy: Issues and Practices

Personnel/Human Resource Management

provide a discussion of the link between managerial strategy and personnel policy.

puts it, &quot;For a man to believe he is in truth 'the boss,' he must know he is receiving more pay than the men and women he supervises and, with few exceptions, more than any employee in the operation who occupies a nonsupervisory job&quot;

Registered Radiographers Physical Food Nurses Therapists Service Hourly Wage of Staff Hourly Wage of Supervisors Supervisor-to-Staff

Source: Authors' tabulations from the 1985 BLS Hospital Industry Wage Survey. http://clevelandfed.org/research/workpaper/index.cfm Best available copyAppendix Table A1 Means and Standard Deviations Variable -

Source: Authors' tabulations from the 1985 BLS Hospital Industry Wage Survey. http://clevelandfed.org/research/workpaper/index.cfm Best available copyTable 3 Correlation of Supervisor-to-Staff Ratios,

Sources of Wage Dispersion: A Contribution of Inter-Employer Differentials Within Industry&quot;, Federal Reserve Bank of Cleveland Working Paper 8802,

the appendix for a description of the calculation of supervisor-to-staff ratios for each occupation. Odiorne

The structure of supervision and pay in hospitals

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