THE LABOR SUPPLY BEHAVIOR OF SELF-EMPLOYED SOLO PRACTICE PHYSICIANS

This paper investigates the empirical labour supply behaviour of self- employed solo practice physicians. The specification of the empirical labour supply equation is based on a model of constrained utility-maxi mizing behaviour that recognizes the physician makes work/leisure choi ces based on an endogenous shadow wage and faces a non-linear budget c onstraint. The findings suggest that the typical self-employed solo pr actice male physician operates on the upward-sloping portion of the la bour supply curve and is relatively unresponsive to changes in margina l hourly medical practice earnings and non-practice income.