Working Paper: NBER ID: w29665
Authors: 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.
Keywords: No keywords provided
JEL Codes: I11; J44
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| expanding the scope of practice for nurse practitioners (NPs) (I11) | increases demand for NPs (J23) |
| adoption of full SOP laws (G38) | increases demand for NPs (J23) |
| expanding the scope of practice for nurse practitioners (NPs) (I11) | reallocates employment within the healthcare sector (J68) |
| increased demand for NPs (J23) | increases self-employment among NPs (J23) |
| expanding the scope of practice for nurse practitioners (NPs) (I11) | shifts roles away from hospitals to outpatient care facilities (I11) |
| expanded scope of practice for nurse practitioners (NPs) (I11) | NP earnings increase (E01) |
| increased demand for NPs (J23) | overall NP employment remains relatively unchanged (J69) |
| increased demand for NPs (J23) | constrained supply side in the labor market for NPs (J23) |