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Old 9th October 2019, 12:08 PM   #184
lomiller
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Originally Posted by blutoski View Post

Just to clarify: the Balumal Effect would also apply to all a healthcare company's employees' compensation, not just the physicians. ie: CEOs, managers, directors, lawyers and other specialists. It's an attempt to explain why wages are compensated at a higher rate than expected when comparing against productivity.
Maybe the Balumal Effect could be used to explain salary increases of Canadian doctors because Canada needs to compete with US salaries, but Im hard pressed to see how US doctors could make more money by moving to some other profession.

Id suggest that wage gains with no productivity gains in this case would be better explained by reduced competition, or reduced market efficiency by some other mechanism like an increase in information asymmetry.
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