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Re-licensing requirements for professionals that move across borders are widespread. In this paper, we measure the effects of occupational licensing by exploiting an immigrant physician re-training assignment rule. Instrumental variables and quantile treatment effects estimates indicate large returns to ac- quiring an occupational license and negative selection into licensing status. We also develop a general model of optimal license acquisition which, together with the empirical results, suggests that stricter re-licensing requirements may not only lead to practitioner rents but also to lower average quality of service in

Doctors without Borders? Relicensing Requirements and Negative Selection in the Market for Physicians