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Wages and work conditions as determinants for physicians’ work decisions

Author

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  • Askildsen, Jan Erik

    () (Health Economics Bergen - HEB, University of Bergen, Department of Economics)

  • Holmås, Tor Helge

    () (Health Economics Bergen - HEB, University of Bergen, Department of Economics)

Abstract

It is not uncommon that publicly employed physicians also have income from work outside the hospital, often termed moonlighting. There is little empirical evidence of such activity. In this paper we investigate which factors that may influence physicians’ choice of work between the public hospital sector and elsewhere. An exceptionally high wage increase in 1996 for one group of hospital physicians (assistant physicians) serves as a natural experiment, and we analyse whether wages in general and this reform in particular have affected physicians’ external earnings. For assistant physicians we find that higher wages at public hospitals affect negatively both the decisions to earn income externally, and level of income once active. For consultant physicians, on the other hand, there was no such response to the wage increase. Several hospital specific factors representing job specific work characteristics also matter for physicians’ decisions to moonlight.

Suggested Citation

  • Askildsen, Jan Erik & Holmås, Tor Helge, 2006. "Wages and work conditions as determinants for physicians’ work decisions," Working Papers in Economics 06/06, University of Bergen, Department of Economics.
  • Handle: RePEc:hhs:bergec:2006_006
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    File URL: http://www.uib.no/filearchive/No.%2006-06.pdf
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    References listed on IDEAS

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    1. Dustmann, Christian & Rochina-Barrachina, María Engracia, 2000. "Selection Correction in Panel Data Models: An Application to Labour Supply and Wages," IZA Discussion Papers 162, Institute for the Study of Labor (IZA).
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    Cited by:

    1. Johannessen, Karl Arne & Kittelsen, Sverre A.C. & Hagen, Terje P., 2017. "Assessing physician productivity following Norwegian hospital reform: A panel and data envelopment analysis," Social Science & Medicine, Elsevier, vol. 175(C), pages 117-126.

    More about this item

    Keywords

    Physicians; wages; job characteristics; moonlighting; panel data.;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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