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What Factors Influence the Earnings of GPs and Medical Specialists in Australia? Evidence from the MABEL Survey

Author

Listed:
  • Terence Chai Cheng

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Anthony Scott

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Sung-Hee Jeon

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Guyonne Kalb

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • John Humphreys

    (School of Rural Health, Monash University)

  • Catherine Joyce

    (Department of Epidemiology and Preventive Medicine, Monash University)

Abstract

To date, there has been little data or empirical research on the determinants of doctors' earnings despite earnings having an important role in influencing the cost of health care, decisions on workforce participation and labour supply. This paper examines the determinants of annual earnings of general practitioners and specialists using the first wave of the Medicine in Australia: Balancing Employment and Life (MABEL), a new longitudinal survey of doctors in Australia. For both GPs and specialists, earnings are higher for men, for those who are self-employed, who do after hours or on-call work, and who work in areas with a high cost of living. GPs have higher earnings if they work in larger practices, in outer regional or rural areas, and in areas with lower GP density, whilst specialists earn more if they are a fellow of their college, have more working experience, spend more time in clinical work, have less complex patients, or work in inner regional areas. Overall, GPs earn about 32% less than specialists. The returns from on-call work, experience, and self-employment are higher for specialists compared to GPs.

Suggested Citation

  • Terence Chai Cheng & Anthony Scott & Sung-Hee Jeon & Guyonne Kalb & John Humphreys & Catherine Joyce, 2010. "What Factors Influence the Earnings of GPs and Medical Specialists in Australia? Evidence from the MABEL Survey," Melbourne Institute Working Paper Series wp2010n12, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2010n12
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2010n12.pdf
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    References listed on IDEAS

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    Cited by:

    1. Johar, Meliyanni, 2012. "Do doctors charge high income patients more?," Economics Letters, Elsevier, vol. 117(3), pages 596-599.
    2. Schurer, Stefanie & Kühnle, Daniel & Scott, Anthony & Cheng, Terence Chai, 2012. "One Man's Blessing, Another Woman's Curse? Family Factors and the Gender-Earnings Gap of Doctors," IZA Discussion Papers 7017, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    earnings; general practitioners; hedonic regression; specialists;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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