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Doctors Without Borders? Re-licensing Requirements and Negative Selection in the Market for Physicians

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  • Adriana Kugler
  • Robert M. Sauer

Abstract

Re-licensing requirements for professionals that move across borders are widespread. In this paper, we measure the effects of occupational licensing by exploiting an immigrant physician re-training 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 which, together with the empirical results, suggests that stricter re-licensing requirements may not only lead to practitioner rents, but also to lower average quality of service in the market for physicians.

Suggested Citation

  • Adriana Kugler & Robert M. Sauer, 2004. "Doctors Without Borders? Re-licensing Requirements and Negative Selection in the Market for Physicians," Working Papers 133, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:133
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    References listed on IDEAS

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    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General

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