RELATIVE INCOME EXPECTATIONS, EXPECTED MALPRACTICE PREMIUM COSTS, ANDOTHER DETERMINANTS OF PHYSICIAN SPECIALTY CHOICE

We analyze the effects of relative income expectations expected malpra ctice premium cost, and other economic and noneconomic factors on phys ician specialty choice. The data for this paper are taken front respon ses of medical students who completed the Association of American Medi cal Colleges' Medical School Questionnaire and graduated from medical school in 1995. A random utility model is used to guide our thinking; the econometric technique is multinomial legit regression. Selection o f a surgical or support specialty is found to be positively income mot ivated, while the influence of expected relative income is negatively related to the choice of primary-care and medical practices. Concern o ver malpractice premium cost is negatively related to surgical and pos itively related to primary-care selection. Other important determinant s of choice are planned location of practice, length of residency, typ e of medical school attended, score on the science problems section of the Medical College Admission Test, predictable working hours and per ceived prestige of the specialty. Policies that alter expected relativ e income, length of residency, desired location of practice, medical s chool attended, predictable working hours, and prestige of practice, r ather than financial aid, may be appropriate for correcting a perceive d maldistribution of physicians among specialties.