Physicians' Occupational Licensing and the Quantity-Quality Trade-Off
Juan Atal (),
Tomas Larroucau (),
Pablo Munoz () and
Cristobal Otero ()
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Juan Atal: University of Pennsylvania and NBER
Tomas Larroucau: Arizona State University
Pablo Munoz: Universidad de Chile
Cristobal Otero: Columbia Business School
PIER Working Paper Archive from Penn Institute for Economic Research, Department of Economics, University of Pennsylvania
Abstract:
Occupational licensing is a widespread quality regulation that increases the quality of labor but reduces its quantity. We provide a framework to empirically quantify this trade-off and apply it to physician licensing, where both quality and access to care are critical concerns. Using quasi-exogenous variation driven mostly by a recent and unprecedented migration of physicians to Chile, we show that more physicians improve access and patient outcomes in tertiary care, including mortality. We also find that lower quality - as measured by physician performance on the licensing exam - worsens patient outcomes. Building on these findings, we evaluate the implications of locally changing the stringency of the current licensing policy.
JEL-codes: I18 J24 J44 J45 (search for similar items in EconPapers)
Pages: 79 pages
Date: 2025-07-28
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