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Take the Money and Run? Hypothetical Fee Variations and French GPs’ Labour Supply

Author

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  • Olivier Chanel
  • Alain Paraponaris
  • Christel Protière
  • Bruno Ventelou

Abstract

This paper analyses how French general practitioners? (GPs) labour supply would respond to changes in their fee per consultation, seeking to determine whether there is a backward-bending curve.?Because French GPs? fees only evolve very slowly and are generally fixed by the National Health Insurance Fund, fee variability is not sufficient to observe changes in labour supply.?Therefore, we designed a contingent valuation survey randomly presenting GPs with three hypothetical fee increases.?Empirical evidence from 1,400 GPs supports the hypothesis of a negative slope in their labour supply curve.?This suggests that increasing fees is not an effective policy to increase the supply of medical services. JEL Codes: C21, I12, J22, J4.

Suggested Citation

  • Olivier Chanel & Alain Paraponaris & Christel Protière & Bruno Ventelou, 2017. "Take the Money and Run? Hypothetical Fee Variations and French GPs’ Labour Supply," Revue économique, Presses de Sciences-Po, vol. 68(3), pages 357-377.
    • Handle: RePEc:cai:recosp:reco_683_0357
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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. Brigitte Dormont & Cécile Gayet, 2021. "The Ban on Extra-Fees for Beneficiaries of the CMU-C Health Cover: What Consequences for Physicians and Dentists in Private Practice?," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 524-525, pages 31-47.

    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J4 - Labor and Demographic Economics - - Particular Labor Markets

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