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IZA Discussion Paper No. 15126
March 2022
Staff Engagement, Job Complementarity and Labour Supply: Evidence from the English NHS Hospital Workforce

updated version of this paper published as IZA DP No. 15638.

We investigate the relationship among staff engagement, job complementarities and labour supply in the hospital sector, where excessive turnover of the clinical staff (doctors and nurses) can be detrimental for quality of care. We exploit a unique and rich panel dataset constructed by combining employee-level payroll and survey records from the universe of English NHS hospitals. System-GMM estimates remove the endogeneity bias due to reverse causality, revealing nurses' elasticities of retention with respect to engagement of 0.1 and 0.85, and doctors' elasticities of retention with respect to nurses' retention of 0.16 and 0.2, respectively within the hospital and the NHS. Estimates of unconditional quantile regressions confirm these findings, with nurses' engagement-elasticities as large as 1.4 for providers with low retention. Higher engagement is also beneficial to reduce staff absences. Our work is informative on the role played by staff engagement and labour supply complementarities in the workforce planning and management of large organizations.

Communications
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Network Coordination
Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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