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Journal of Labor Economics Vol. 23 No. 3 2005

Doctors without Borders? Relicensing Requirements and Negative Selection in the Market for Physicians

Adriana D. Kugler1,2; Robert M. Sauer3

1 Universitat Pompeu Fabra · 2 University of Houston · 3 University of Southampton

open access

Abstract

Relicensing requirements for professionals who move across borders are widespread. In this article, we measure the effects of occupational licensing by exploiting an immigrant physician retraining assignment rule. Instrumental variables and quantile treatment effects estimates indicate large returns to acquiring an occupational license and negative selection into licensing status. We also develop a model of optimal license acquisition that, together with the empirical results, suggests that stricter relicensing requirements may lead not only to practitioner rents but also to lower average quality of service in the market for physicians.

DOI
10.1086/430283
Volume
23
Issue
3
Pages
437-465
Language
en
Sources
openalex crossref

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