Wage elasticity refers to the responsiveness of the supply or demand for labor to changes in wages. This concept is crucial in understanding labor markets, especially in healthcare, as it highlights how wage changes can influence the availability of physicians and nurses. A higher wage elasticity indicates that small changes in wages lead to significant changes in labor supply or demand, which can affect staffing levels and overall healthcare delivery.
congrats on reading the definition of Wage Elasticity. now let's actually learn it.