A Discrete Choice Analysis of Norwegian Physicians’ Labor Supply and Sector Choice.
Sæther, Erik Magnus
Number in series: 19
What is the effect of increased wages on physician’s working hours and sector choice? This study applies an econometric framework that allows for non-convex budget sets, non-linear labor supply curves and imperfect markets with institutional constraints. The physicians are assumed to make choices from a finite set of job possibilities, characterized by practice form, hours and wage rates. The individuals may combine their main position with an extra job, opening for a variety of combinations of hours in the respective jobs. I take into account the complicated payment schemes for physicians, taxes and household characteristics when estimating labor supply on Norwegian micro data. The results show a modest response in total hours to a wage increase, but a reallocation of hours in favor of the sector with increased wages.
C25, I10, J22
Physicians, discrete choice, labor supply
Project:Oppdragsgiver: Norges forskningsråd
Frisch prosjekt: 4101 - Economics of health
NFR via HERO