The effect of temporary nursing services on the supply of labor to nursing

Do temporary nursing agencies cause labor supply to nursing to be greater or less than it otherwise would be? Using cross-section survey data from 1984, 1988, and 1992, this question is examined within a nine-equation system capable of estimating hours that would be supplied in the absence of the agency option. Results indicate that 6% to 8% more labor would be supplied by nurses who work exclusively for agencies if that option no longer existed. This is essentially because it is more likely that these nurses will decide to work full-time rather than work part-time or not at all.