%0 Report %A Gonzalez, Paula %A Montes-Rojas, Gabriel V. %A Pal, Sarmistha %T Dual Practice by Health Workers: Theory and Evidence from Indonesia %D 2017 %8 2017 Sep %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 11038 %U https://www.iza.org/publications/dp11038 %X 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. %K motivation %K weak monitoring %K Ministry of Health Regulation %K dual practice of health professionals %K opportunity costs of public service %K Indonesia