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)
Ketel, Nadine, Edwin Leuven, Hessel Oosterbeek, and Bas van der Klaauw.
"The Returns to Medical School: Evidence from Admission Lotteries."
American Economic Journal: Applied Economics,
Analysis of Health Care Markets
Returns to Education
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Professional Labor Markets; Occupational Licensing