This study proposes to test for differences in wages between sub- occupations within nursing, specifically between wages of nurses working in nursing homes and wages of nurses working in other sectors of nursing, controlling for the effects of schooling and work experience, and correcting for possible selection effects in the decision to work as a registered nurse of not. In addition to estimating wages for each sector, it is proposed to estimate rates of return to education for nursing overall, and then for each of the sub-occupations within nursing, paying particular attention to the comparison between the nursing home and hospital sectors. The questions examined in this study arise from neoclassical and segmented labor market theory in labor economics, as well as application of human capital accumulation theory to the experience of nurses in the labor market. A simultaneous equations model using maximum likelihood estimation and correcting for selection bias in the work force participation decision is employed.
