Occupational Choice and Occupational Earnings: Selectivity Bias in a Simultaneous Logit-OLS Model

摘要

The study looks at how income and various background and medical school characteristics affect the distribution of physicians across specialties. The model is designed to predict the probabilities that specified types of physicians will make various specialty choice decisions. Previous studies of specialty and/or locational distribution of physicians have neglected the simultaneity of the specialty-choice specialty-income relationship. An econometric model has been designed to overcome this 'selectivity bias'. The primary hypothesis tested is that specialty income has a significant effect on specialty choice. The empirical results are based on a three alternative specialty classification: general practice, internal medicine, and all other physicians. Analysis of data from the AMA periodic survey of physicians suggest that income is indeed a strong determinant of specialty choice. Age, sex, race, age at graduation from medical school, and medical school research orientation are also important factors.