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Employer Quality and Skilled Workers’ Mobility: Evidence from English NHS Hospital Doctors

Author

Listed:
  • Cellini, Stefano

    (University of Surrey)

  • Mello, Marco

    (University of Aberdeen)

  • Moscelli, Giuseppe

    (University of Surrey)

Abstract

We build a unique dataset by linking high-quality administrative data sources and model the mobility choices of tenured English National Health Service (NHS) hospital doctors across hospital organizations according to a random utility choice framework based on hospital quality, pay-for-performance incentives, local residential amenities and travel-to-work commuting distances. We account for the endogeneity of hospital quality through a control function approach. Doctors are willing to move 5.3 extra kilometers in order join a new hospital organization with a one-standard-deviation lower mortality rate, whereas they are willing to trade a standard deviation of the average monetary bonus received for their clinical excellence with the cost of moving 5 extra kilometers from their home. Primary school quality and low crime residential areas are only marginally salient in the choice of new employer. Counterfactual simulation estimates reveal that simultaneous improvements in hospital mortality and performance-related pay awards by one fourth of a standard deviation can lead to decreases in regional hospital doctor vacancy rates by 2% to 11%.

Suggested Citation

  • Cellini, Stefano & Mello, Marco & Moscelli, Giuseppe, 2025. "Employer Quality and Skilled Workers’ Mobility: Evidence from English NHS Hospital Doctors," IZA Discussion Papers 17798, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17798
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    More about this item

    Keywords

    organization quality; hospital; physicians; mobility; skilled workers; incentive pay; vacancies;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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