Relaxing occupational licensing requirements: Analyzing wages and prices for a medical service

Morris M. Kleiner, Allison Marier, Kyoung Won Park, Coady Wing

    Research output: Contribution to journalArticlepeer-review

    34 Scopus citations

    Abstract

    Occupational licensing laws have been relaxed in a large number of US states to give nurse practitioners the ability to perform more tasks without the super-vision of medical doctors. We investigate how these regulations affect wages, hours worked, and the prevailing transaction prices and quality levels associated with certain types of medical services. We find that when nurse practitioners have more independence in their scope of practice, their wages are higher but physicians’ wages are lower, which suggests some substitution between the occupations. Our analysis of insurance claims data shows that more rigid regulations increase the price of a well-child visit by 3-16 percent. However, we find no evidence that the changes in regulatory policy are reflected in outcomes that might be connected to the quality and safety of health services.

    Original languageEnglish (US)
    Pages (from-to)261-291
    Number of pages31
    JournalJournal of Law and Economics
    Volume59
    Issue number2
    DOIs
    StatePublished - May 2016

    Bibliographical note

    Publisher Copyright:
    © 2016 by The University of Chicago. All rights reserved.

    Copyright:
    Copyright 2016 Elsevier B.V., All rights reserved.

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