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

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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 11.05.2004, 12:15 - 13:30


Presentation by 

Robert M. Sauer (Royal Holloway, University of London)


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 general 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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