For many years the NHS has been subject to allegations that gender and raci
al discrimination are a feature of the internal labour market for qualified
nurses. This paper examines this issue with regard to the promotion proces
s using 1994 survey data. We start by rejecting the assumption of covariate
exogeneity inherent in the ordered probit model. A full simultaneous model
is then developed which has important consequences for estimates of the in
fluence of gender, ethnicity, training and career interruptions. We find ev
idence of significant differences in speed of promotion between gender and
ethnic groups, which imply large differences in career earnings.