. In this paper, we study physician specialty decisions using several unique data sets which include information on almost all Canadian physicians who practised in Canada between 1989 and 1998. Unlike previous studies, we use a truly exogenous measure of potential income across general and specialty medicine to estimate the effect of income on physicians’ specialty choices. Furthermore, our estimation procedure allows us to purge the income-effect estimates of non-pecuniary specialty attributes which may be correlated with higher paying specialties. Understanding the effect of potential income (and other variables) on choices is necessary if the desired mix across generalists and specialists as well as across specialties is to be achieved. Our results show that physicians respond to differences in income when making their specialty decisions. More specifically, our simulation exercise suggests that provinces could increase the proportion of graduates who select a surgical specialty by increasing the fees they pay to them.
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Paper provided by HEC Montréal, Institut d'économie appliquée in its series Cahiers de recherche with number
03-01.
Length: 29 pages Date of creation: Jan 2003 Date of revision: Handle: RePEc:iea:carech:0301
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Find related papers by JEL classification: I10 - Health, Education, and Welfare - - Health - - - General I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
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