Do Dutch Dentists Extract Monopoly Rents?

Arbeitspapier

We exploit admission lotteries to estimate the payoffs to the dentistry study 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 human capital investments or sacrifices in family outcomes. The natural explanation is that Dutch dentists extract a monopoly rent, which we attribute to the limited supply of dentists in the Netherlands. We discuss policies to curtail this rent.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 11351

Classification and Topics

• Classification: Wirtschaft ; Professional Labor Markets; Occupational Licensing ; Health: Government Policy; Regulation; Public Health ; Higher Education; Research Institutions ; Multiple or Simultaneous Equation Models: Instrumental Variables (IV) Estimation
• Subject: dentists ; returns to education ; monopoly rents ; random assignment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ketel, Nadine ; Leuven, Edwin ; Oosterbeek, Hessel ; van der Klaauw, Bas
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/177155
• Last update: 10.03.2025, 11:41 AM CET