Pharmacists' earnings: Their level and distribution

Background: From a methodological perspective, the central tendency and the spread of an earnings distribution are independent outcomes. Theoretically, they may be related to each other. Objective: Explore the direction and magnitude of the effect of changes in the mean of pharmacists' wage-and-salary earnings on earnings inequality. Specifically, the probe focused on whether an increase in the central tendency led to a wider or a narrower spread. Methods: The original data were collected using a survey questionnaire mailed to pharmacists in South Florida, USA. Earnings means and inequality indicators were calculated in a previous study for 41 groupings of pharmacists in 16 categories. Using ordinary least squares, a model was tested depicting five indicators of wage-and-salary earnings inequality (log earnings variance, coefficient of variation, lower median share, 90-10 decile ratio, and Gini coefficient) as a function of the earnings mean. Separate sets of equations were developed for all pharmacists in the data set and for only full-time pharmacists. Results: A relationship was found between the central tendency and the dispersion of pharmacists' earnings, and this relationship was mediated by whether or not part-time pharmacists were included in the analysis. Higher levels of earnings led to less inequality for all pharmacists, but the opposite effect was observed for full-time pharmacists: higher earnings levels led to greater inequality in the distribution. Conclusion: The mechanics of the earnings generation process of full-time pharmacists are different from those of part-time pharmacists. The opportunity cost of leisure, which is a determinant of practitioners' number of hours worked, affects patterns of earnings and also may affect other labor outcomes.