Stephen Morris (Health Economics Research Group, Brunel University) Matt Sutton (Health Economics Research Unit, University of Aberdeen) Hugh Gravelle (National Primary Care Research & Development Centre, Centre for Health Economics, University of York) Bob Elliott (Health Economics Research Unit, University of Aberdeen) Arne Hole (National Primary Care Research & Development Centre, Centre for Health Economics, University of York) Ada Ma (Health Economics Research Unit, University of Aberdeen) Bonnie Sibbald (National Primary Care Research and Development Centre, University of Manchester) Diane Skatun (Health Economics Research Unit, University of Aberdeen)
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We analyse the determinants of annual net income and wages (annual net income/hours) of general practitioners (GPs) using a unique, anonymised, non-disclosive dataset derived from tax returns for 21,657 GPs in England for the financial year 2002/3. The average GP had a gross income of £189,300, incurred expenses of £115,600, and earned an annual net income of £73,700. The mean wage was £35 per hour. Net income and wages depended on gender, experience, list size, partnership size, whether or not the GP worked in a dispensing practice, whether or not they worked in a Primary Medical Service (PMS) practice, and the characteristics of the local population (limiting long term illness rate, proportion from ethnic minorities, population density, Index of Multiple Deprivation 2000). The findings have implications for discrimination by GP gender and country of qualification, economies of scale by practice size, incentives for competition for patients, compensating differentials for local population characteristics, and the attractiveness of PMS versus General Medical Services contracts.
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Paper provided by Centre for Health Economics, University of York in its series Working Papers with number
036cherp.
Find related papers by JEL classification: I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
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