Analysis: When economists published revealing data about doctor salaries, the backlash was intense. Why? And why do doctors earn so much more in America than in other countries?
We here at the Department of Data are dedicated to exploring the weird and wondrous power of the data that defines our world.By accounting for all streams of income, they revealed that doctors make more than anyone thought — and more than any other occupation we’ve measured. In the prime earning years of 40 to 55, the average physician made $405,000
Yale University economist Jason Abaluck notes that when he asks the doctors and future doctors in his health economics classes why they earn so much, answers revolve around the brutal training required to enter the profession. “Until they finish their residency, they’re working an enormous number of hours and their lifestyle is not the lifestyle of a rich person,” Abaluck told us.That is true.
But that debt almost vanishes against a physician’s still more-than-robust expected $10 million in lifetime income.One unfair, inflammatory and accurate answer would be that they like money. They also found that each 10 percent increase in the Medicare payment rate for a procedure causes a 4.4 percent increase in billing for the procedure — mostly because the doctor will work to find additional patients who could benefit from the now-more-profitable intervention.“We can’t just sit back and say, ‘Oh doctors, they’re good people. They wouldn’t possibly do this,’” Gottlieb said. “They may be very good people, but that doesn’t mean that they don’t care about economics.”“In general, U.S.
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