Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89837
Authors: 
Cheng, Terence Chai
Kalb, Guyonne
Scott, Anthony
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Paper 7766
Abstract: 
This paper investigates the factors influencing the allocation of time between public and private sectors by medical specialists. A discrete choice structural labour supply model is estimated, where specialists choose from a set of job packages that are characterised by the number of working hours in the public and private sectors. The results show that medical specialists respond to changes in earnings by reallocating working hours to the sector with relatively higher earnings, while leaving total working hours unchanged. The magnitudes of the own-sector and cross-sector earnings elasticities fall in the range of 0.21-0.54, and are larger for male than for female specialists. The labour supply response varies by doctors' age and medical specialty. Family circumstances such as the presence of young dependent children influence the hours worked by female specialists but not male specialists. We illustrate the relevance of our findings by simulating the impact of recent trends in earnings growth in the public and private sectors.
Subjects: 
labour supply
elasticities
medical specialists
public-private mix
JEL: 
I10
I11
J22
J24
Document Type: 
Working Paper

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