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The interprovincial migration of Canadian physicians: does income matter?

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  • Michael Benarroch
  • Hugh Grant

Abstract

This study applies a multinomial logit model of human-capital migration to examine the factors influencing the movement of physicians within Canadian provinces between 1976 and 1992. The empirical investigation covers general practitioners and specialists (it excludes interns/residents) between seven regions (Atlantic Canada, Quebec, Ontario, Manitoba, Saskatchewan, Alberta and British Columbia). The results suggest that differences in real income have a positive and significant effect on a physician's decision to migrate form one province to another. Provinces with the highest after tax income, highest expenditure per physician, and highest fee-per-service rates have the highest net rate of in-migration. Income differences are however, not the only factor influencing a physician's choice to move. Working conditions within a province, which we proxy with the number of hospitals beds and health expenditures per capita, are also important factors. Likewise, the ratio of rural to urban population, distance between the major city in each province and provincial population all have a negative impact on a physician's migration choice. Finally, a dummy variable is used to allow for language differences between Quebec and the rest of the provinces and find that language differences have a significant and negative impact on a physician decision to migrate.

Suggested Citation

  • Michael Benarroch & Hugh Grant, 2004. "The interprovincial migration of Canadian physicians: does income matter?," Applied Economics, Taylor & Francis Journals, vol. 36(20), pages 2335-2345.
  • Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2335-2345
    DOI: 10.1080/0003684042000281543
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    References listed on IDEAS

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    1. Bolduc, Denis & Fortin, Bernard & Fournier, Marc-Andre, 1996. "The Effect of Incentive Policies on the Practice Location of Doctors: A Multinomial Probit Analysis," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 703-732, October.
    2. Christopher Ferrall & Allan W. Gregory & William Tholl, 1998. "Endogenous Work Hours and Practice Patterns of Canadian Physicians," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 1-27, February.
    3. Joseph P. Newhouse & Albert P. Williams & Bruce W. Bennett & William B. Schwartz, 1982. "Does the Geographical Distribution of Physicians Reflect Market Failure?," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 493-505, Autumn.
    4. Lars Osberg & Daniel V. Gordon & Zhengxi Lin, 1994. "Interregional Migration and Interindustry Labour Mobility in Canada: A Simultaneous Approach," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 58-80, February.
    5. Kathleen M. Day & Stanley L. Winer, 2001. "Policy-induced Migration in Canada: An Empirical Study," Carleton Economic Papers 01-08, Carleton University, Department of Economics.
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    Cited by:

    1. Dostie, Benoit & Léger, Pierre Thomas, 2006. "Self-Selection in Migration and Returns to Unobservable Skills," IZA Discussion Papers 1942, Institute for the Study of Labor (IZA).
    2. Nil Demet Gungor & Aysıt Tansel, 2008. "Brain drain from Turkey: an investigation of students' return intentions," Applied Economics, Taylor & Francis Journals, vol. 40(23), pages 3069-3087.
    3. Benoit Dostie & Pierre Thomas Léger, 2006. "Self-Selection in Migration and Returns to Skills," Cahiers de recherche 0612, CIRPEE.
    4. Isabelle Clerc & Olivier L’Haridon & Alain Paraponaris & Camelia Protopopescu & Bruno Ventelou, 2012. "Fee-for-service payments and consultation length in general practice: a work--leisure trade-off model for French GPs," Applied Economics, Taylor & Francis Journals, vol. 44(25), pages 3323-3337, September.
    5. M. Olfert & Murray Jelinski & Dimitrios Zikos & John Campbell, 2012. "Human capital drift up the urban hierarchy: veterinarians in Western Canada," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(2), pages 551-570, October.
    6. Basu, Kisalaya & Rajbhandary, Sameer, 2006. "Interprovincial migration of physicians in Canada: What are the determinants?," Health Policy, Elsevier, vol. 76(2), pages 186-193, April.
    7. Maurus Rischatsch & Peter Zweifel, 2013. "What do physicians dislike about managed care? Evidence from a choice experiment," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(4), pages 601-613, August.
    8. McDonald, James Ted & Worswick, Christopher, 2012. "The migration decisions of physicians in Canada: The roles of immigrant status and spousal characteristics," Social Science & Medicine, Elsevier, vol. 75(9), pages 1581-1588.
    9. Rajbhandary, Sameer & Basu, Kisalaya, 2006. "Interprovincial migration of physicians in Canada: Where are they moving and why?," Health Policy, Elsevier, vol. 79(2-3), pages 265-273, December.

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