An Analysis of Navy Nurse Corps Specialties and the Effects of Civilian Market Wages on Retention

Abstract

Between 2000 and 2020, the civilian nursing labor market continued to evolve to meet the needs of society putting additional strain on the military nursing labor market. In particular, the demand for nurses has outpaced supply in specific specialties and geographical regions, resulting in the continued rising of real wages and increased incentives to attract nurses. This can have significant implications for the Navy Nurse Corps planners, as the Nurse Corps is in direct competition with the labor market. This study examines the civilian market wages of nurses between 2000 and 2018 disaggregated by census region, specialty, and years of experience and then assesses the relationship to the military nursing market. Additionally, this study analyzes how the military-civilian wage differential affects retention in the Navy Nurse Corps. The multivariate regression model indicates that while controlling for basic demographics, prior-enlisted experience, duty station census region, and nursing specialty, a $1,000 increase in the military-civilian wage differential will increase the odds of a nurse remaining on active duty by 17.2 percent at the three-year decision point and 9.2 percent at the ten-year decision point. The key findings of this study will enable the Navy Nurse Corps planners to continue to make effective and targeted decisions regarding recruiting and retention while competing in a highly competitive civilian labor market.