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Specialty Selection and Lifetime Returns to Specialization Within Medicine

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  • Jayanta Bhattacharya

Abstract

In 1995, the average American surgeon earned over $269,000 while family practice doctors earned $131,200. Using data from the Survey of Young Physicians and the American Medical Association’s Socio-Economic Monitoring Survey, I find that only half of income differences between generalists and specialists can be explained by hours of work, residency training length, and observed and unobserved ability differences—the three competitive market explanations for differences in doctors’ incomes across specialties. The most likely explanation for the remaining income differences is differential entry barriers across specialties.

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  • Jayanta Bhattacharya, 2005. "Specialty Selection and Lifetime Returns to Specialization Within Medicine," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    • Handle: RePEc:uwp:jhriss:v:40:y:2005:i:1:p115-143
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    References listed on IDEAS

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    Cited by:

    1. Joseph G. Altonji & Ling Zhong, 2021. "The Labor Market Returns to Advanced Degrees," Journal of Labor Economics, University of Chicago Press, vol. 39(2), pages 303-360.
    2. Di Paolo, Antonio & Tansel, Aysit, 2017. "Analyzing Wage Differentials by Fields of Study: Evidence from Turkey," IZA Discussion Papers 10915, Institute of Labor Economics (IZA).
    3. Joshua D. Gottlieb & Maria Polyakova & Kevin Rinz & Hugh Shiplett & Victoria Udalova, 2023. "Who Values Human Capitalists' Human Capital? The Earnings and Labor Supply of U.S. Physicians," NBER Working Papers 31469, National Bureau of Economic Research, Inc.
    4. Choi, Darwin & Lou, Dong & Mukherjee, Abhiroop, 2018. "The effect of superstar firms on college major choice," LSE Research Online Documents on Economics 118941, London School of Economics and Political Science, LSE Library.
    5. Sivey, Peter & Scott, Anthony & Witt, Julia & Joyce, Catherine & Humphreys, John, 2012. "Junior doctors’ preferences for specialty choice," Journal of Health Economics, Elsevier, vol. 31(6), pages 813-823.
    6. Di Paolo, Antonio & Tansel, Aysit, 2017. "Analyzing Wage Differentials by Fields of Study: Evidence from Turkey," GLO Discussion Paper Series 91, Global Labor Organization (GLO).
    7. Alice J. Chen & Elizabeth L. Munnich & Stephen T. Parente & Michael R. Richards, 2022. "Do Physicians Warm Up to Higher Medicare Prices? Evidence from Alaska," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(2), pages 394-425, March.
    8. Beomsoo Kim, 2007. "The Impact of Malpractice Risk on the Use of Obstetrics Procedures," The Journal of Legal Studies, University of Chicago Press, vol. 36(S2), pages 79-119, June.
    9. Boneva, Teodora & Golin, Marta & Rauh, Christopher, 2022. "Can perceived returns explain enrollment gaps in postgraduate education?," Labour Economics, Elsevier, vol. 77(C).
    10. Thomas A. Mroz & Gabriel Picone & Frank Sloan & Arseniy P. Yashkin, 2016. "Screening For A Chronic Disease: A Multiple Stage Duration Model With Partial Observability," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(3), pages 915-934, August.
    11. Ze Chen & Yuan Wang & Yanjun Guan & Michael Jie Guo & Rong Xu, 2023. "Long‐term effect of childhood pandemic experience on medical major choice: Evidence from the 2003 severe acute respiratory syndrome outbreak in China," Health Economics, John Wiley & Sons, Ltd., vol. 32(5), pages 1120-1147, May.
    12. Brendan Rabideau & Michael R. Richards & Christopher M. Whaley, 2024. "Training labor and treatment behavior: Evidence from physician residency programs," Health Economics, John Wiley & Sons, Ltd., vol. 33(9), pages 2059-2087, September.
    13. Mroz, T. & Picone, G., 2011. "A Multiple State Duration Model with Endogenous Treatment," Health, Econometrics and Data Group (HEDG) Working Papers 11/19, HEDG, c/o Department of Economics, University of York.
    14. Joshua D. Gottlieb & Maria Polyakova & Kevin Rinz & Hugh Shiplett & Victoria Udalova, 2020. "Who Values Human Capitalists' Human Capital? Healthcare Spending and Physician Earnings," Working Papers 20-23, Center for Economic Studies, U.S. Census Bureau.
    15. Alice Chen & Anthony Lo Sasso & Michael R. Richards, 2018. "Graduating into a downturn: Are physicians recession proof?," Health Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 223-235, January.
    16. Alice Chen & Anthony T. Lo Sasso & Michael R. Richards, 2018. "Supply‐side effects from public insurance expansions: Evidence from physician labor markets," Health Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 690-708, April.
    17. Lin, Lee-Kai, 2022. "Effects of a global budget payment scheme on medical specialty workforces," Social Science & Medicine, Elsevier, vol. 309(C).
    18. Eric Helland & Mark H. Showalter, 2009. "The Impact of Liability on the Physician Labor Market," Journal of Law and Economics, University of Chicago Press, vol. 52(4), pages 635-663, November.
    19. Okumura, Tsunao & Ueno, Yuko & Usui, Emiko, 2024. "Effects of mandatory residencies on female physicians’ specialty choices: Evidence from Japan's new medical residency program," Labour Economics, Elsevier, vol. 90(C).

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