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Public, Private or Both? Analysing Factors Influencing the Labour Supply of Medical Specialists

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  • Cheng, Terence Chai

    (University of Adelaide)

  • Kalb, Guyonne

    (University of Melbourne)

  • Scott, Anthony

    (Melbourne Institute of Applied Economic and Social Research)

Abstract

This paper investigates the factors influencing the allocation of time between public and private sectors by medical specialists. A discrete choice structural labour supply model is estimated, where specialists choose from a set of job packages that are characterised by the number of working hours in the public and private sectors. The results show that medical specialists respond to changes in earnings by reallocating working hours to the sector with relatively higher earnings, while leaving total working hours unchanged. The magnitudes of the own-sector and cross-sector earnings elasticities fall in the range of 0.21-0.54, and are larger for male than for female specialists. The labour supply response varies by doctors' age and medical specialty. Family circumstances such as the presence of young dependent children influence the hours worked by female specialists but not male specialists. We illustrate the relevance of our findings by simulating the impact of recent trends in earnings growth in the public and private sectors.

Suggested Citation

  • Cheng, Terence Chai & Kalb, Guyonne & Scott, Anthony, 2013. "Public, Private or Both? Analysing Factors Influencing the Labour Supply of Medical Specialists," IZA Discussion Papers 7766, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7766
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    Cited by:

    1. Barbara Broadway & Guyonne Kalb & Jinhu Li & Anthony Scott, 2017. "Do Financial Incentives Influence GPs' Decisions to Do After‐hours Work? A Discrete Choice Labour Supply Model," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 52-66, December.
    2. Tianshu Bai & Susan Méndez & Anthony Scott & Jongsay Yong, 2020. "The falling growth in the use of private hospitals in Australia," Melbourne Institute Working Paper Series wp2020n18, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Belinda O'Sullivan & Matthew McGrail & Jennifer May, 2022. "Responsive policies needed to secure rural supply from increasing female doctors: A perspective," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(1), pages 40-49, January.
    4. Kalb, Guyonne & Kühnle, Daniel & Scott, Anthony & Cheng, Terence Chai & Jeon, Sung-Hee, 2015. "What Factors Affect Doctors' Hours Decisions: Comparing Structural Discrete Choice and Reduced-Form Approaches," IZA Discussion Papers 9054, Institute of Labor Economics (IZA).
    5. Maripier Isabelle & Mark Stabile, 2020. "Local inequality and departures from publicly provided health care in Canada," Health Economics, John Wiley & Sons, Ltd., vol. 29(9), pages 1031-1047, September.

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    More about this item

    Keywords

    labour supply; elasticities; medical specialists; public-private mix;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • 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
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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