This study has attempted to determine why nurses with a baccalaureate degree were less likely to work in a hospital than nurses with less education. Three possible reasons were examined dealing with nurse preferences and employer requirements.

The National Career Pattern Study, begun in 1962 by the National League for Nursing, was the source of data. The method of analysis was multiple regression. Two cohorts, with a total sample size of 6,929 were studied.

It was confirmed that nurses with a baccalaureate degree were less likely to work in a hospital than nurses with less education. Generally, associate degree nurses were no more or less likely to work in a hospital than nurses with diploma education.

Although preferences for employer type stated at entry to nurse education were an important determinant of employer type, they did not explain why baccalaureate degree nurses were less likely to work in a hospital than nurses with less education.

During nurse education, although there were changes in the nurses' preference for employer type in the anticipated direction (i.e. baccalaureate nurse away from hospital), the net change was small. Nurses' preferences for employer type were largely determined by the time she entered nurse training. Nurses preferences formed while in school explained some of the relation between degree and employer type.

Holding either entry or graduation preferences for employer type constant, baccalaureate nurses were still less likely to be employed in a hospital than nurses with less education. The degree effect worked independently of preferences and was more important than preferences. Therefore, employer demand for nurses with baccalaureate education was the predominant reason for the relation between degree and employer type.

An important policy implication of this study is that baccalaureate education programs were not systematically altering students' attitudes in such a way to make them prefer a non-hospital employer. While nurse preferences were important, they were not, predominantly a function of baccalaureate degree education. Therefore, any concern that baccalaureate degree programs were causing graduates to shy away from the hospital setting, and thereby reducing the supply of nurses, was unwarranted.