Medical Demography and Intergenerational inequalities in GPs' earnings
This article examines the link between restrictions on the number of physicians and general practitioners' earnings. Using a representative panel of 6,016 French self-employed GPs over the years 1983 to 2004, we show that the policies aimed at manipulating the number of places in medical schools strongly affect physicians' permanent level of earnings.We estimate an earnings function to identify experience, time and cohort effects. The cohort effect is very large: the estimated gap in earnings between "good" and "bad" cohorts may reach 25%. GPs beginning during the eighties have the lowest permanent earnings: they belong to the baby-boom numerous cohorts and faced the consequences of an unlimited number of places in medical schools. Conversely, the decrease in the number of places in medical schools led to an increase in permanent earnings of GPs who began their practice in the mid nineties. A stochastic dominance analysis shows that unobserved heterogeneity does not compensate for average differences in earnings between cohorts. These findings suggest that the first years of practice are decisive for a GP. If competition between physicians is too intense at the beginning of career, she will suffer from permanently lower earnings. To conclude, our results show that the policies aimed at reducing the number of medical students succeeded in buoying up physicians' permanent earnings.
|Date of creation:||2008|
|Publication status:||Published in Health Economics, Wiley, 2008, 17 (9), pp.1037-1055|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00351781|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
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- Russell Davidson & Jean-Yves Duclos, 1998. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," LIS Working papers 181, LIS Cross-National Data Center in Luxembourg.
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- Brigitte Dormont & Anne-Laure Samson, 2007. "Intergenerational inequalities in GPs’ earnings: experience, time and cohort effects," EconomiX Working Papers 2007-34, University of Paris West - Nanterre la Defense, EconomiX.
- McGuire, Thomas G. & Pauly, Mark V., 1991. "Physician response to fee changes with multiple payers," Journal of Health Economics, Elsevier, vol. 10(4), pages 385-410. Full references (including those not matched with items on IDEAS)
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