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

  • Adriana Kugler
  • Robert M. Sauer

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.

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File URL: http://research.barcelonagse.eu/tmp/working_papers/133.pdf
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Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 133.

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Date of creation: Jun 2004
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Handle: RePEc:bge:wpaper:133
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  1. Weiss, Y. & Sauer, R.M. & Gotlibovski, M., 1999. "Immigration, Search and Lost of Skill," Papers 26-99, Tel Aviv.
  2. Angrist, Joshua D. & Guryan, Jonathan, 2008. "Does teacher testing raise teacher quality? Evidence from state certification requirements," Economics of Education Review, Elsevier, vol. 27(5), pages 483-503, October.
  3. Milton Friedman & Simon Kuznets, 1954. "Income from Independent Professional Practice," NBER Books, National Bureau of Economic Research, Inc, number frie54-1, June.
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