The impact of the Nurse Training Act on the supply of nurses, 1974-1983

Abstract

The number of nurses per capita in the United States increased 100% over the period 1972-1983, owing largely to funds made available through the Nurse Training Act (NTA). I studied the subsidy effect of the NTA by type of program (baccalaureate, associate, and diploma) and by type of school (public and private) using a fixed-effects analysis-of-covariance model that pooled time-series cross-sectional data from 639 schools over the 10-year period 1974-1983. I found that the estimated impact of the NTA ranged from +35,800 to +43,550 per nurse educated. I discuss whether this marginal price per additional nurse trained is a "good buy" as a government program in the context of other current nurse labor market issues.