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THE WELFARE COSTS OF SUPPLY RESTRICTIONS IN THE GENERAL PRACTICE LABOUR MARKET
Author(s) -
Clarke Harry R.
Publication year - 1995
Publication title -
australian journal of public administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.524
H-Index - 41
eISSN - 1467-8500
pISSN - 0313-6647
DOI - 10.1111/j.1467-8500.1995.tb01167.x
Subject(s) - inefficiency , subsidy , welfare , public economics , economics , government (linguistics) , immigration , business , labour economics , market economy , political science , linguistics , philosophy , law
This paper examines policy arguments for further restricting supply to the Australian General Practice profession by immigration and medical school policies. It uses economic analysis to assess the costs and benefits of supply restrictions. The effects of Medicare and GP income‐targeting on policy design are analysed. Restrictions are shown to impose net costs on the community as a whole and on government. Even with Medicare subsidies, the inefficiency costs of the current health system are minimised with liberal policies for accepting foreign‐ trained GPs.