@TechReport{iza:izadps:dp11038, author={Gonzalez, Paula and Montes-Rojas, Gabriel V. and Pal, Sarmistha}, title={Dual Practice by Health Workers: Theory and Evidence from Indonesia}, year={2017}, month={Sep}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={11038}, url={https://www.iza.org/publications/dp11038}, abstract={Using a simple theoretical model we conjecture that dual practice may increase the number of patients seen but reduce hours spent at public facilities, if public physicians lack motivation and/or if their opportunity costs are very large. Using data from Indonesia, we then test these theoretical conjectures. Our identification strategy relies on a 1997 legislation necessitating health professionals to apply for license for private practice only after three years of graduation. Results using a difference-in-difference regression discontinuity design provides support to our conjectures, identifying the role of weak work discipline, lack of motivation and opportunity costs of public service provision.}, keywords={motivation;weak monitoring;Ministry of Health Regulation;dual practice of health professionals;opportunity costs of public service;Indonesia}, }