A Discrete Choice Analysis of Norwegian Physicians’ Labor Supply and Sector Choice
AbstractWhat is the effect of increased wages on physician’s working hours and sector choice? This study applies an econometric framework that allows for non-convex budget sets, nonlinear labor supply curves and imperfect markets with institutional constraints. The physicians are assumed to make choices from a finite set of job possibilities, characterized by practice form, hours and wage rates. The individuals may combine their main position with an extra job, opening for a variety of combinations of hours in the respective jobs. I take into account the complicated payment schemes for physicians, taxes and household characteristics when estimating labor supply on Norwegian micro data. The results show a modest response in total hours to a wage increase, but a reallocation of hours in favor of the sector with increased wages.
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Bibliographic InfoPaper provided by Oslo University, Health Economics Research Programme in its series HERO On line Working Paper Series with number 2003:19.
Length: 47 pages
Date of creation: 22 Jun 2009
Date of revision:
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Phone: 2307 5309
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More information through EDIRC
Physicians; discrete choice; labor supply;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- I10 - Health, Education, and Welfare - - Health - - - General
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-11 (All new papers)
- NEP-DCM-2009-07-11 (Discrete Choice Models)
- NEP-HEA-2009-07-11 (Health Economics)
- NEP-LAB-2009-07-11 (Labour Economics)
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