By estimating panel-fixed effect model with the OECD data from 1980 to
2012, we investigate how the supply of physicians in OECD countries affects
health outcomes, such as the life expectancy, standardized mortality rate,
potential years of life lost (PYLL), and infant mortality rate. Our results show
that an increase in the supply of physicians has significantly positive effect on
population health. It is estimated, for example, adding one physician per 1000
persons is associated with an increase in the life expectancy at birth by 0.7 to
0.9 years and a decline of the infant mortality rate by 1.8 per 1000. Our
results suggest that the increased supply of physicians is one of the major
contributing factors to the long-term decline of mortality in OECD countries
since 1980.