Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/177155 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11351
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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.
Subjects: 
dentists
returns to education
monopoly rents
random assignment
JEL: 
J44
I18
I23
C36
Document Type: 
Working Paper

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