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Medical demography and intergenerational inequalities in general practitioners' earnings

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Date
2008
Dewey
Economie sociale
Sujet
Longitudinal data; Stochastic dominance; Revenus des médecins; Earnings; Self-employed; GPs
JEL code
I18; I11
Journal issue
Health Economics
Volume
17
Number
9
Publication date
2008
Article pages
1037-1055
Publisher
Wiley
DOI
http://dx.doi.org/10.1002/hec.1387
URI
https://basepub.dauphine.fr/handle/123456789/1624
Collections
  • LEDa : Publications
Metadata
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Author
Dormont, Brigitte
Samson, Anne-Laure
Type
Article accepté pour publication ou publié
Abstract (EN)
This article examines the link between restrictions on the number of physicians and general practitioners' (GPs) earnings. Using a representative panel of 6016 French self-employed GPs over the years 1983-2004, we estimate an earnings function to identify experience, time and cohort effects. The estimated gap in earnings between good and bad cohorts can be as large as 25%. GPs who began their practices during the eighties have the lowest permanent earnings: they belong to the large cohorts of the baby-boom and face the consequences of an unlimited number of places in medical schools. Conversely, the decrease in the number of places in medical schools led to an increase in permanent earnings of GPs who began their practices in the mid-nineties. A stochastic dominance analysis shows that unobserved heterogeneity does not compensate for average differences in earnings between cohorts. These findings suggest that the first years of practice are decisive for a GP. If competition between physicians is too intense at the beginning of their careers, they will suffer from permanently lower earnings. To conclude, our results show that the policies aimed at reducing the number of medical students succeeded in buoying up physicians' permanent earnings.

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