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

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Author Info

  • 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.

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Bibliographic Info

Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2010n12.

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Length: 33 pages
Date of creation: Jul 2010
Date of revision:
Handle: RePEc:iae:iaewps:wp2010n12

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Keywords: earnings; general practitioners; hedonic regression; specialists;

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References

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  1. Badi H. Baltagi & Espen Bratberg & Tor Helge Holmås, 2003. "A Panel Data Study of Physicians’ Labor Supply: The Case of Norway," CESifo Working Paper Series 895, CESifo Group Munich.
  2. H Gravelle & A Risa Hole, 2008. "Measuring and testing for gender discrimination in professions: the case of English family doctors," Discussion Papers 08/27, Department of Economics, University of York.
  3. Elliott, Robert F. & Ma, Ada H.Y. & Scott, Anthony & Bell, David & Roberts, Elizabeth, 2007. "Geographically differentiated pay in the labour market for nurses," Journal of Health Economics, Elsevier, vol. 26(1), pages 190-212, January.
  4. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
  5. Divine Ikenwilo & Anthony Scott, 2007. "The effects of pay and job satisfaction on the labour supply of hospital consultants," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1303-1318.
  6. Wenda Yan & Terence Chai Cheng & Anthony Scott & Catherine M. Joyce & John Humphreys & Guyonne Kalb & Anne Leahy, 2011. "Medicine in Australia: Balancing Employment and Life (MABEL)," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 44(1), pages 102-112, 03.
  7. Rizzo, John A. & Blumenthal, David, 1994. "Physician labor supply: Do income effects matter?," Journal of Health Economics, Elsevier, vol. 13(4), pages 433-453.
  8. Ohsfeldt, Robert L. & Culler, Steven D., 1986. "Differences in income between male and female physicians," Journal of Health Economics, Elsevier, vol. 5(4), pages 335-346, December.
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Cited by:
  1. Stefanie Schurer & Daniel Kuehnle & Anthony Scott & Terence Chai Cheng, 2012. "One Man's Blessing, Another Woman's Curse? Family Factors and the Gender-Earnings Gap of Doctors," Melbourne Institute Working Paper Series wp2012n24, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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