The Returns to Medical School: Evidence from Admission Lotteries
American Economic Journal: Applied Economics
vol. 8,
no. 2, April 2016
(pp. 225-54)
Abstract
We exploit admission lotteries to estimate the returns to medical school in the Netherlands. Using data from up to 22 years after the lottery, we find that in every single year after graduation doctors earn at least 20 percent more than people who end up in their next-best occupation. Twenty-two years after the lottery the earnings difference is almost 50 percent. Only a small fraction of this difference can be attributed to differences in working hours and human capital investments. The returns do not vary with gender or ability, and shift the entire earnings distribution. (JEL D44, I11, I26, J24, J31, J44)Citation
Ketel, Nadine, Edwin Leuven, Hessel Oosterbeek, and Bas van der Klaauw. 2016. "The Returns to Medical School: Evidence from Admission Lotteries." American Economic Journal: Applied Economics, 8 (2): 225-54. DOI: 10.1257/app.20140506Additional Materials
JEL Classification
- D44 Auctions
- I11 Analysis of Health Care Markets
- I26 Returns to Education
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 Wage Level and Structure; Wage Differentials
- J44 Professional Labor Markets; Occupational Licensing
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