Labor supply functions of working male and female pharmacists: In search of the backward bend

Abstract

BackgroundPrevious research has shown that U.S. pharmacists experience negative elasticities along a backward-bending labor supply function. The presence of a backward bend in the labor supply curve may cause a decrease in the amount of work at a time of labor shortage. Therefore, the determinants of pharmacists’ labor supply functions should be explored to assess the impact of this backward bend. ObjectivesTo determine whether female and male pharmacist work inputs are influenced by the same factors and estimate where the backward bend occurs, if at all, in their labor supply functions. MethodsData were collected using a survey questionnaire mailed to registered pharmacists in South Florida. Labor supply functions were formulated and tested separately for 558 men and 498 women. The wage rate, other household income, human capital stock, job-related preferences, and opinion variables were hypothesized to explain labor supply differentials. Human capital stock variables included professional experience, holding a specialty board certification, and number of children; job-related preference variables included urban-rural location of work site and main role as a practitioner; and opinion variables included stress, autonomy, fairness in the workplace, flexibility, and job security. ResultsMen and women responded differently to identical stimuli, and their supply functions were influenced in different ways by the explanatory variables. Both genders exhibited positive labor supply elasticities greater than those reported in other studies. Both genders’ backward bend in their labor supply functions occurred several standard deviations to the right of the mean. ConclusionThe backward bend in the labor supply functions of male and female pharmacists is not likely to affect in the near future the labor market’s ability to regulate shortages of practitioners via increases in the wage rate. A more thorough understanding of pharmacists’ labor supply functions must address gender issues and differences in response to identical stimuli.