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Get paid more, work more? Lessons from French physicians' labour supply responses to hypothetic fee increases
Olivier Chanel 1, Alain Paraponaris 2, Christèle Protière 2, Bruno Ventelou 1
(07/12/2010)

This paper is devoted to the analysis of the General Practitioners' (GPs) labour supply, specifically focusing on the physicians' labour supply responses to higher compensations. This analysis is mainly aimed at challenging the reality of a ‘backward bending' form for the labour supply of GPs. Because GPs' fees only evolve very slowly and are mainly fixed by the National Health Insurance Fund, we designed a contingent valuation survey in which hypothetical fee increases are randomly submitted to GPs. Empirical evidence from 1,400 French GPs supports the hypothesis of a negative slope for the GPs' labour supply curve. Therefore, increasing the supply of physicians' services through an increase in fees is not a feasible policy.
1 :  Groupement de Recherche en Économie Quantitative d'Aix-Marseille (GREQAM)
Université de la Méditerranée - Aix-Marseille II – Université Paul Cézanne - Aix-Marseille III – École des Hautes Études en Sciences Sociales [EHESS] – CNRS : UMR6579
2 :  Sciences économiques et sociales, systèmes de santé, sociétés (SE4S)
INSERM : U912 – Institut de recherche pour le développement [IRD] – Université de la Méditerranée - Aix-Marseille II – ORS PACA
Sciences de l'Homme et Société/Economie et finances
General practitioners – contingent valuation – price of leisure – labour supply – backward bending curve
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