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Determinants of General Practitioners' Wages in England

Author

Listed:
  • Stephen Morris

    (Health Economics Research Group, Brunel University)

  • Matt Sutton

    (Health Economics Research Unit, University of Aberdeen)

  • Hugh Gravelle

    (National Primary Care Research & Development Centre, Centre for Health Economics, University of York)

  • Bob Elliott

    (Health Economics Research Unit, University of Aberdeen)

  • Arne Hole

    (National Primary Care Research & Development Centre, Centre for Health Economics, University of York)

  • Ada Ma

    (Health Economics Research Unit, University of Aberdeen)

  • Bonnie Sibbald

    (National Primary Care Research and Development Centre, University of Manchester)

  • Diane Skatun

    (Health Economics Research Unit, University of Aberdeen)

Abstract

We analyse the determinants of annual net income and wages (annual net income/hours) of general practitioners (GPs) using a unique, anonymised, non-disclosive dataset derived from tax returns for 21,657 GPs in England for the financial year 2002/3. The average GP had a gross income of £189,300, incurred expenses of £115,600, and earned an annual net income of £73,700. The mean wage was £35 per hour. Net income and wages depended on gender, experience, list size, partnership size, whether or not the GP worked in a dispensing practice, whether or not they worked in a Primary Medical Service (PMS) practice, and the characteristics of the local population (limiting long term illness rate, proportion from ethnic minorities, population density, Index of Multiple Deprivation 2000). The findings have implications for discrimination by GP gender and country of qualification, economies of scale by practice size, incentives for competition for patients, compensating differentials for local population characteristics, and the attractiveness of PMS versus General Medical Services contracts.

Suggested Citation

  • Stephen Morris & Matt Sutton & Hugh Gravelle & Bob Elliott & Arne Hole & Ada Ma & Bonnie Sibbald & Diane Skatun, 2008. "Determinants of General Practitioners' Wages in England," Working Papers 036cherp, Centre for Health Economics, University of York.
    • Handle: RePEc:chy:respap:36cherp
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    References listed on IDEAS

    as
    1. Myeong-Su Yun, 2005. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," Economic Inquiry, Western Economic Association International, vol. 43(4), pages 766-772, October.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Emma McManus & Jack Elliott & Rachel Meacock & Paul Wilson & Judith Gellatly & Matt Sutton, 2021. "The effects of structure, process and outcome incentives on primary care referrals to a national prevention programme," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1393-1416, June.
    2. Allen, Thomas & Whittaker, William & Sutton, Matt, 2017. "Does the proportion of pay linked to performance affect the job satisfaction of general practitioners?," Social Science & Medicine, Elsevier, vol. 173(C), pages 9-17.
    3. Terence C. Cheng & Pravin K. Trivedi, 2015. "Attrition Bias in Panel Data: A Sheep in Wolf's Clothing? A Case Study Based on the Mabel Survey," Health Economics, John Wiley & Sons, Ltd., vol. 24(9), pages 1101-1117, September.
    4. Chunzhou Mu & Shiko Maruyama, 2013. "Salient Gender Difference in the Wage Elasticity of General Practitioners' Labour Supply," Discussion Papers 2013-16, School of Economics, The University of New South Wales.
    5. Isabelle Clerc & Olivier L’Haridon & Alain Paraponaris & Camelia Protopopescu & Bruno Ventelou, 2012. "Fee-for-service payments and consultation length in general practice: a work--leisure trade-off model for French GPs," Applied Economics, Taylor & Francis Journals, vol. 44(25), pages 3323-3337, September.
    6. Yan Feng & Ada Ma & Shelley Farrar & Matt Sutton, 2015. "The Tougher the Better: An Economic Analysis of Increased Payment Thresholds on the Performance of General Practices," Health Economics, John Wiley & Sons, Ltd., vol. 24(3), pages 353-371, March.
    7. Gravelle, Hugh & Hole, Arne Risa & Santos, Rita, 2011. "Measuring and testing for gender discrimination in physician pay: English family doctors," Journal of Health Economics, Elsevier, vol. 30(4), pages 660-674, July.
    8. Terence Chai Cheng & Anthony Scott & Sung‐Hee Jeon & Guyonne Kalb & John Humphreys & Catherine Joyce, 2012. "What Factors Influence The Earnings Of General Practitioners And Medical Specialists? Evidence From The Medicine In Australia: Balancing Employment And Life Survey," Health Economics, John Wiley & Sons, Ltd., vol. 21(11), pages 1300-1317, November.

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    More about this item

    Keywords

    Physician; family. General practitioner. Income. Wages. Contract.;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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