Medical labour markets are important due to their size and the importance
of medical labour in the production of healthcare and subsequent patient outcomes. We present a summary of important trends in the UK medical labour
market, and review the latest research on factors that determine medical labour
supply and the impact of labour on patient outcomes. The topics examined
include the responsiveness of labour supply to changes in wages, regulation
and other incentives; factors which determine the wide variation in physician
practice and style; and the effect of teams and management quality on patient
outcomes. This literature reveals that while labour supply is relatively unresponsive to changes in wages, medical personnel do react strongly to other
incentives even in the short run. This is likely to have consequences for quality of care provided to patients. We set out a series of unanswered questions
in the UK setting, including: the importance of non-financial incentives in
recruiting and retaining medical staff; how individuals can be incentivised to
work in particular specialties and regions; and how medical teams can be best
organised to improve care.