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Empirical Determinants of Physician Incomes--Evidence from Canadian Data

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  • Brown, M C
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    Abstract

    This paper makes use of the fact that the stock of medical manpower in Canada is institutionally and exogenously determined in order to develop a model predicting physician average net income. An econometric evaluation of this model on a sample involving Canada's ten provinces during 1968-1982 suggests that a one per cent increase in physician fees increases physician average net income by 0.70 percent, and a one percent increase in the physician to population ratio reduces average net income by 0.62 percent. In both cases, the elasticities are less than unity because the supply function for an individual physician is backward bending--on average, a Canadian physician reduces his hours worked by an amount between 0.17 and 0.50 percent (95 percent confidence interval) if his real wage rate is increased by one percent.

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    Bibliographic Info

    Article provided by Springer in its journal Empirical Economics.

    Volume (Year): 14 (1989)
    Issue (Month): 4 ()
    Pages: 273-89

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    Handle: RePEc:spr:empeco:v:14:y:1989:i:4:p:273-89

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    Cited by:
    1. Thomas F. Crossley & Jeremiah Hurley & Sung-Hee Jeon, 2007. "Physician Labour Supply in Canada: a Cohort Analysis," Centre for Health Economics and Policy Analysis Working Paper Series 2006-04, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.
    2. Sarma, Sisira & Devlin, Rose Anne & Belhadji, Bachir & Thind, Amardeep, 2010. "Does the way physicians are paid influence the way they practice? The case of Canadian family physicians' work activity," Health Policy, Elsevier, vol. 98(2-3), pages 203-217, December.
    3. Cannings, K. & Montmarquette, C. & Mahseredjian, S., 1994. "Entrance Quotas abs Admission to Medical Schools: A Sequential Probit Model," Cahiers de recherche 9418, Centre interuniversitaire de recherche en ├ęconomie quantitative, CIREQ.

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