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Does the Healthcare Educational Market Respond to Short-Run Local Demand?

Author

Listed:
  • Marcus Dillender
  • Andrew I. Friedson
  • Cong T. Gian
  • Kosali I. Simon

Abstract

The Patient Protection and Affordable Care Act (ACA) increased demand for healthcare across the U.S., but it is unclear if or how the supply side has responded to meet this demand. In this paper, we take advantage of plausibly exogenous geographical heterogeneity in the ACA to examine the healthcare education sector’s response to increased demand for healthcare services. We look across educational fields, types of degrees, and types of institutions, paying particular attention to settings where our conceptual model predicts heightened responses. We find no statistically significant evidence of increases in graduates and can rule out fairly modest effects. This implies that healthcare production may have adjusted to increased demand from insurance expansion in other ways rather than primarily through new graduates of local healthcare educational markets.

Suggested Citation

  • Marcus Dillender & Andrew I. Friedson & Cong T. Gian & Kosali I. Simon, 2019. "Does the Healthcare Educational Market Respond to Short-Run Local Demand?," NBER Working Papers 26088, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26088
    Note: ED EH
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    Cited by:

    1. Michael DiNardi, 2021. "Affordable Care Act Medicaid expansions and the nurse labor market," Southern Economic Journal, John Wiley & Sons, vol. 88(1), pages 367-398, July.
    2. Chung Hyeran & Arends-Kuenning Mary, 2020. "Do foreign-educated nurses displace native-educated nurses?," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-28, March.
    3. Rajashri Chakrabarti & Maxim Pinkovskiy, 2019. "The Affordable Care Act and the Market for Higher Education," CESifo Working Paper Series 7869, CESifo.

    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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