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Occupational Licensing and the Healthcare Labor Market

Author

Listed:
  • Marcus Dillender
  • Anthony T. Lo Sasso
  • Brian J. Phelan
  • Michael R. Richards
Abstract
We examine the labor market impact of states easing occupational license requirements by expanding the scope of practice (SOP) for nurse practitioners (NPs), allowing them to practice without physician oversight. Using data on job postings, we find that employers increase their demand for NPs when states expand NP SOP. We then show that SOP laws also increase NP earnings and reallocate NPs across the healthcare sector, including increasing self-employment. The laws only mildly increase employment, however. Therefore, expanding NP SOP has the potential to increase access to primary care, but inelastic NP labor supply has largely prevented this from occurring.

Suggested Citation

  • Marcus Dillender & Anthony T. Lo Sasso & Brian J. Phelan & Michael R. Richards, 2022. "Occupational Licensing and the Healthcare Labor Market," NBER Working Papers 29665, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29665
    Note: EH LS
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    File URL: http://www.nber.org/papers/w29665.pdf
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    Cited by:

    1. Dodini, Samuel, 2023. "The spillover effects of labor regulations on the structure of earnings and employment: Evidence from occupational licensing," Journal of Public Economics, Elsevier, vol. 225(C).
    2. Chen, Alice J. & Munnich, Elizabeth L. & Parente, Stephen T. & Richards, Michael R., 2023. "Provider turf wars and Medicare payment rules," Journal of Public Economics, Elsevier, vol. 218(C).

    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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