State University of New York at Albany
1400 Washington Avenue
Albany, NY 12222
Institutional Affiliation: University at Albany
NBER Working Papers and Publications
|March 2018||Malpractice Reform and the Sorting of New Physicians by Medical Human Capital|
with Pinka Chatterji, Gerald R. Marschke: w24401
We test whether state malpractice reforms differentially attract physicians whose human capital attributes may predispose them towards higher-than-average malpractice risk. Using an exit survey of physicians completing graduate medical education between 1998 and 2017, we estimate willingness-to-pay to locate in a reformed malpractice state. On average, new physicians are willing to give up about $11 in hourly wages to locate in a state that has passed reform. Estimates show that new physicians trained in specialties with high malpractice indemnity payments are willing to forego a marginally statistically significant $19 more in hourly wages to locate in reformed states compared to new physicians in specialties with lower payments. Estimates for these differences for new physicians who grad...