
Intergenerational inequalities in GPs' earnings: experience, time and cohort effects
Dormont, Brigitte; Samson, Anne-Laure (2007), Intergenerational inequalities in GPs' earnings: experience, time and cohort effects. https://basepub.dauphine.fr/handle/123456789/6891
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Type
Document de travail / Working paperDate
2007Publisher
University of Lausanne
Series title
Institute of Health Economics and Management (IEMS), Working PapersPublished in
Lausanne
Pages
26
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Show full item recordAbstract (EN)
This paper analyses the regulation of ambulatory care and its impact on physicians'careers,using a representative panel of 6; 016 French self-employed GPs over the years 1983 to 2004. Thebeginning of their activity is influenced by the regulated number of places in medical schools, named in France numerus clausus. We show that the policies aimed at manipulating the numerusclausus strongly affect physiciansípermanent level of earnings.Our empirical approach allows us to identify experience, time and cohort effects in GPs'earnings. The estimated cohort e§ect is very large, revealing that intergenerational inequalities due to fluctuations in the numerus clausus are not negligible. GPs beginning during the eighties have the lowest permanent earnings : they faced the consequences of an unlimited number of places inmedical schools in the context of a high density due to the baby-boom numerous cohorts. Conversely, the decrease in the numerus clausus led to an increase in permanent earnings of GPswho began their practice in the mid nineties. Overall, the estimated gap in earnings between "good" and "bad" cohorts may reach 25%. We performed a more thorough analysis of the earnings distribution to examine whether individual unobserved heterogeneity could compensate for average differences between cohorts. Our results about stochastic dominance between earningsdistributions by cohort show that it is not the case.Subjects / Keywords
earnings; self-employed; GPs; longitudinal data; stochastic dominanceRelated items
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