Medical Demography and Intergenerational Inequalities in GPS' Earnings

Health Economics, Vol. 17, No. 9, pp. 1037-1055, 2008

Posted: 12 Jan 2009

See all articles by Brigitte Dormont

Brigitte Dormont

Université Paris Dauphine

Anne-Laure Samson

Université Paris Ouest - Nanterre, La Défense - EconomiX

Date Written: September 1, 2008

Abstract

This article examines the link between restrictions on the number of physicians and general practitioners' earnings. Using a representative panel of 6,016 French self-employed GPs over the years 1983 to 2004, we show that the policies aimed at manipulating the number of places in medical schools strongly affect physicians' permanent level of earnings.

We estimate an earnings function to identify experience, time and cohort effects. The cohort effect is very large: the estimated gap in earnings between "good" and "bad" cohorts may reach 25%. GPs beginning during the eighties have the lowest permanent earnings: they belong to the baby-boom numerous cohorts and faced 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 practice 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 career, she 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.

Keywords: GPs, self-employed, longitudinal data, earnings, stochastic dominance

JEL Classification: C2, D63, I18

Suggested Citation

Dormont, Brigitte and Samson, Anne-Laure, Medical Demography and Intergenerational Inequalities in GPS' Earnings (September 1, 2008). Health Economics, Vol. 17, No. 9, pp. 1037-1055, 2008, Available at SSRN: https://ssrn.com/abstract=1326017

Brigitte Dormont

Université Paris Dauphine ( email )

Place du Marechal de Lattre de Tassigny
75016 Paris, 75775
France

Anne-Laure Samson (Contact Author)

Université Paris Ouest - Nanterre, La Défense - EconomiX ( email )

200 Avenue de la République
Nanterre cedex, Nanterre Cedex 92000
France

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
433
PlumX Metrics