ABSTRACT
In this chapter we focus our attention on another application of markets to the health care sector, namely, the labour market for nurses. First, a theoretical framework is provided which may be used to examine the way in which labour markets operate and the relationship between wage rates, employment, workers and employers. Secondly, this theoretical framework is applied to the labour market for nurses in the UK National Health Service. The mechanisms by which this market operates are explored in considerable detail and the peculiarities of the market are discussed.
