Do Dutch dentists extract monopoly rents?

Nadine Ketel, Edwin Leuven, Hessel Oosterbeek, Bas van der Klaauw

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

We exploit lottery-determined admission to dental school to estimate the payoffs to the study of dentistry in the Netherlands. Using data from up to 22 years after the lottery, we find that in most years after graduation dentists earn around 50,000 Euros more than they would earn in their next-best profession. The payoff is larger for men than for women but does not vary with high school GPA. The large payoffs cannot be attributed to longer working hours, larger investments while studying (opportunity costs and direct costs), or unpleasant aspects of working as a dentist. A plausible explanation is that dentists earn a monopoly rent. Results from regressions of dentists’ earnings on dentists density are consistent with this, as are the facts that the supply of dentists in the Netherlands is low and that the payoff does not vary with high school GPA.

LanguageEnglish
Pages145-158
Number of pages14
JournalJournal of Health Economics
Volume63
DOIs
Publication statusPublished - 1 Jan 2019

Fingerprint

Dentists
Netherlands
Costs and Cost Analysis
Dental Schools
Dentistry

Keywords

  • Admission lotteries
  • Dentists
  • Medical labor markets
  • Monopoly rents
  • Occupational licensing

Cite this

Ketel, Nadine ; Leuven, Edwin ; Oosterbeek, Hessel ; van der Klaauw, Bas. / Do Dutch dentists extract monopoly rents?. In: Journal of Health Economics. 2019 ; Vol. 63. pp. 145-158.
@article{4d741ae989eb481fa5babf4097ea031e,
title = "Do Dutch dentists extract monopoly rents?",
abstract = "We exploit lottery-determined admission to dental school to estimate the payoffs to the study of dentistry in the Netherlands. Using data from up to 22 years after the lottery, we find that in most years after graduation dentists earn around 50,000 Euros more than they would earn in their next-best profession. The payoff is larger for men than for women but does not vary with high school GPA. The large payoffs cannot be attributed to longer working hours, larger investments while studying (opportunity costs and direct costs), or unpleasant aspects of working as a dentist. A plausible explanation is that dentists earn a monopoly rent. Results from regressions of dentists’ earnings on dentists density are consistent with this, as are the facts that the supply of dentists in the Netherlands is low and that the payoff does not vary with high school GPA.",
keywords = "Admission lotteries, Dentists, Medical labor markets, Monopoly rents, Occupational licensing",
author = "Nadine Ketel and Edwin Leuven and Hessel Oosterbeek and {van der Klaauw}, Bas",
year = "2019",
month = "1",
day = "1",
doi = "10.1016/j.jhealeco.2018.11.001",
language = "English",
volume = "63",
pages = "145--158",
journal = "Journal of Health Economics",
issn = "0167-6296",
publisher = "Elsevier",

}

Do Dutch dentists extract monopoly rents? / Ketel, Nadine; Leuven, Edwin; Oosterbeek, Hessel; van der Klaauw, Bas.

In: Journal of Health Economics, Vol. 63, 01.01.2019, p. 145-158.

Research output: Contribution to JournalArticleAcademicpeer-review

TY - JOUR

T1 - Do Dutch dentists extract monopoly rents?

AU - Ketel, Nadine

AU - Leuven, Edwin

AU - Oosterbeek, Hessel

AU - van der Klaauw, Bas

PY - 2019/1/1

Y1 - 2019/1/1

N2 - We exploit lottery-determined admission to dental school to estimate the payoffs to the study of dentistry in the Netherlands. Using data from up to 22 years after the lottery, we find that in most years after graduation dentists earn around 50,000 Euros more than they would earn in their next-best profession. The payoff is larger for men than for women but does not vary with high school GPA. The large payoffs cannot be attributed to longer working hours, larger investments while studying (opportunity costs and direct costs), or unpleasant aspects of working as a dentist. A plausible explanation is that dentists earn a monopoly rent. Results from regressions of dentists’ earnings on dentists density are consistent with this, as are the facts that the supply of dentists in the Netherlands is low and that the payoff does not vary with high school GPA.

AB - We exploit lottery-determined admission to dental school to estimate the payoffs to the study of dentistry in the Netherlands. Using data from up to 22 years after the lottery, we find that in most years after graduation dentists earn around 50,000 Euros more than they would earn in their next-best profession. The payoff is larger for men than for women but does not vary with high school GPA. The large payoffs cannot be attributed to longer working hours, larger investments while studying (opportunity costs and direct costs), or unpleasant aspects of working as a dentist. A plausible explanation is that dentists earn a monopoly rent. Results from regressions of dentists’ earnings on dentists density are consistent with this, as are the facts that the supply of dentists in the Netherlands is low and that the payoff does not vary with high school GPA.

KW - Admission lotteries

KW - Dentists

KW - Medical labor markets

KW - Monopoly rents

KW - Occupational licensing

UR - http://www.scopus.com/inward/record.url?scp=85059943480&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85059943480&partnerID=8YFLogxK

U2 - 10.1016/j.jhealeco.2018.11.001

DO - 10.1016/j.jhealeco.2018.11.001

M3 - Article

VL - 63

SP - 145

EP - 158

JO - Journal of Health Economics

T2 - Journal of Health Economics

JF - Journal of Health Economics

SN - 0167-6296

ER -