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The Park Place Economist

Abstract

This study aims to determine some important determinants of the wage differential between native and immigrant physicians by applying a human capital framework and Ordinary Least Squares (OLS) regression analysis. Section II of the paper details the human capital theoretical framework that is central to this study and that is used in the most important previous literature. Then, this literature is discussed in the context of the research problem that immigrant physicians earn substantially less than native physicians in the U.S. The principle hypotheses are also developed following the theory and literature review. Section III describes the data set and the empirical model that is employed to test the hypotheses. Section IV presents descriptive statistics as well as the results obtained from the regression models and discusses important findings. Section V concludes the paper with policy implications and avenues for future research.

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