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Empirical Determinants of Physician Incomes--Evidence from Canadian Data

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  • Brown, M C

Abstract

This paper makes use of the fact that the stock of medical manpower in Canada is institutionally and exogenously determined in order to develop a model predicting physician average net income. An econometric evaluation of this model on a sample involving Canada's ten provinces during 1968-1982 suggests that a one per cent increase in physician fees increases physician average net income by 0.70 percent, and a one percent increase in the physician to population ratio reduces average net income by 0.62 percent. In both cases, the elasticities are less than unity because the supply function for an individual physician is backward bending--on average, a Canadian physician reduces his hours worked by an amount between 0.17 and 0.50 percent (95 percent confidence interval) if his real wage rate is increased by one percent.

Suggested Citation

  • Brown, M C, 1989. "Empirical Determinants of Physician Incomes--Evidence from Canadian Data," Empirical Economics, Springer, vol. 14(4), pages 273-289.
    • Handle: RePEc:spr:empeco:v:14:y:1989:i:4:p:273-89
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    Cited by:

    1. Sarma, Sisira & Devlin, Rose Anne & Belhadji, Bachir & Thind, Amardeep, 2010. "Does the way physicians are paid influence the way they practice? The case of Canadian family physicians' work activity," Health Policy, Elsevier, vol. 98(2-3), pages 203-217, December.
    2. Thomas F. Crossley & Jeremiah Hurley & Sung‐Hee Jeon, 2009. "Physician labour supply in Canada: a cohort analysis," Health Economics, John Wiley & Sons, Ltd., vol. 18(4), pages 437-456, April.
    3. Sung-Hee Jeon & Jeremiah Hurley, 2010. "Physician Resource Planning in Canada: The Need for a Stronger Behavioural Foundation," Canadian Public Policy, University of Toronto Press, vol. 36(3), pages 359-375, September.
    4. Cannings, Kathy & Montmarquette, Claude & Mahseredjian, Sophie, 1996. "Entrance quotas and admission to medical schools: a sequential probit model," Economics of Education Review, Elsevier, vol. 15(2), pages 163-174, April.

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