A spatially limited job search area is considered to be one of the explanations for overeducation. Previous studies have observed that living in a small labour market increases and spatial mobility reduces the probability of overeducation. This paper examines the influence of region and mobility on the risk of overeducation for men and women. Overeducated individuals are identified with a statistical measurement method. In total, 9.6 percent of all workers are overeducated. A probit model that controls for sample selection bias is used in the empirical analysis. The probability of overeducation seems to depend on the region. In other words, living in a large regional labour market decreases the probability of being overeducated.
JEL classification: J24, R23
We study physiotherapy providers' prices in repeated competitive biddings where multiple providers are accepted in geographical districts. Historically, only very few districts have rejected any providers. We show that this practice increased prices and analyze the effects the risk of rejection has on prices. Our data are derived from three subsequent competitive biddings. The results show that rejecting at least one provider decreased prices by more than 5% in the next procurement round. The results also indicate that providers have learned to calculate their optimal bids, which has also increased prices. Further, we perform counterfactual policy analysis of a capacity-rule of acceptance. The analysis shows that implementing a systematic acceptance rule results in a trade-off between direct cost savings and service continuity at patients' usual providers.
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