Incentives and Dynamics in the Ethiopian Health Worker Labor Market

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12

World Bank Working Paper

a doctor’s chance of geĴing a job in the private sector in Addis—none of the doctors in our sample with private-sector jobs in Addis had parents in the profession. Finally, if regions outside Addis Ababa have diĜculty aĴracting health workers in general, they find it even more problematic recruiting specialists. Incomes

In economic terms, doctors in Addis do beĴer than those in the. As reported in columns 3 and 4 of Table 1.7, asset ownership is higher in Addis, with one half and one quarter of the doctors working in private and public facilities (respectively) reporting ownership of a car, compared with less than 2% and 5% in the SNNPR and Tigray, respectively. House ownership is higher among private-sector physicians in Addis (35%), but the rates among other doctors are similar (10–16%). These paĴerns of asset ownership naturally match the paĴerns of earned incomes. Doctors working in the public sector in Addis earn salaries about 50% more than the average doctor in the regions, while salaries of private-sector doctors are three times as much as those in Tigray and the SNNPR. Part of this diěerential likely reflects the advantages of experience (Addis doctors are older) and specialization (they are more likely to be specialized). However, we find that the rates of specialization in the public and private sectors in Addis are virtually identical, suggesting that training is not the sole driver of observed income diěerentials. Nurses in Addis earn significantly smaller premiums over regional salaries—about 14% more if they work in the public sector and 36% more in the private sector. The gap between private-sector salaries in Addis and those of other doctors is partly oěset by additional sources of income: public-sector doctors in Addis earn additional income equal to 21% of their salaries, while the figures in the SNNPR and Tigray are 17%

Table 1.7. Incomes and Assets of Sampled Health Workers Doctors All Income

Addis

Nurses SNNPR Tigray

All

Public Private

Addis

SNNPR Tigray

Public Private

Salary (US$)

284.5 (17.4)

244.6 (10.5)

480.5 (39.0)

156.4 (14.8)

176.6 (13.9)

100.9 (2.0)

106.8 (2.1)

128.3 (9.6)

87.7 (2.7)

100.8 (1.96)

Other compensation with job (%)

52.7

29.3

46.0

85.5

53.5

47.0

15.5

35.9

73.3

48.7

Housing allowance (%)

18.9

0

0

52.1

34.8

5.9

0

0

11.7

6.7

Total income of health worker (US$)

320.9 (24.8)

297.0 (24.8)

496.8 (40.1)

181.4 (29.7)

233.1 (38.2)

102.6 (2.1)

109.3 (1.7)

130.1 (9.5)

Total income of 443.8 household (US$) (28.1)

509.2 (49.1)

696.9 (55.7)

196.3 30.0

264.3 (46.8)

201.2 (12.8)

298.8 (22.1)

263.9 (25.6)

87.7 103.7 (2.70) (3.7) 139.4 (10.9)

157.5 (10.0)

Assets Own a car (%)

26.9

Own land (%) Own house (%)

WP192_EthiopiaHealth_Text.indb 12

51.0

1.9

4.8

14.8

4.1

13.9

2.4

15.2

34.7

10.2

15.7

6/9/10 1:25:04 PM


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