Psychologist supply, managed care, and the effects on income: Fault lines beneath California psychologists

Data from the 2000 California Survey of Psychological Practice (D. Pingitor e, R. Scheffler, M. Haley, T. Sentell, & D. Schwalm, 2001) were used to mea sure psychologists' income variation associated with demographic characteri stics, managed care participation rate, and mental health workforce supply concentrations. A 10% increase in the supply of psychologists in a psycholo gists' market of practice resulted in a $1,749 reduction in income compared with a $1,330 income reduction due to a 10% increase in managed care parti cipation. The authors discuss how psychologists' income and other aspects o f practice are shaped by market dynamics, trends in the psychologist workfo rce, and public policy.