Empirical Determinants of Physician Incomes--Evidence from Canadian Data
AbstractThis 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 InfoArticle provided by Springer in its journal Empirical Economics.
Volume (Year): 14 (1989)
Issue (Month): 4 ()
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- 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.
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