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Specialization and matching in professional services firms

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  • Andrew J. Epstein
  • Jonathan D. Ketcham
  • Sean Nicholson

Abstract

Economic theory indicates that firms can match workers to jobs and promote productivity‐enhancing specialization better than markets, yet few data exist. We empirically test whether firms enhance matching and specialization in the context of obstetrics. We then examine whether consumers benefit from this. We find that high‐risk patients in group practices match with specialists more than patients of solo physicians, and this improves patients’ health outcomes. Matching based on a patient’s clinical need for a cesarean section delivery and a physician’s cesarean section skill also occurs, but less extensively. These results support the hypothesis that firms facilitate matching and specialization.

Suggested Citation

  • Andrew J. Epstein & Jonathan D. Ketcham & Sean Nicholson, 2010. "Specialization and matching in professional services firms," RAND Journal of Economics, RAND Corporation, vol. 41(4), pages 811-834, December.
    • Handle: RePEc:bla:randje:v:41:y:2010:i:4:p:811-834
    DOI: 10.1111/j.1756-2171.2010.00122.x
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    Cited by:

    1. Simona Grassi & Ching-to Albert Ma, 2016. "Information acquisition, referral, and organization," RAND Journal of Economics, RAND Corporation, vol. 47(4), pages 935-960, November.
    2. Fabio Landini & Antonio Nicolò & Marco Piovesan, 2013. "The Hidden Cost of Specialization," IFRO Working Paper 2013/9, University of Copenhagen, Department of Food and Resource Economics.
    3. Godager , Geir & Scott, Anthony, 2023. "Physician Behavior and Health Outcomes," HERO Online Working Paper Series 2023:3, University of Oslo, Health Economics Research Programme.
    4. Ryan C. McDevitt & James W. Roberts, 2014. "Market structure and gender disparity in health care: preferences, competition, and quality of care," RAND Journal of Economics, RAND Corporation, vol. 45(1), pages 116-139, March.
    5. Larry G. Epstein & Hiroaki Kaido & Kyoungwon Seo, 2016. "Robust Confidence Regions for Incomplete Models," Econometrica, Econometric Society, vol. 84, pages 1799-1838, September.
    6. Andrew J. Epstein & Sean Nicholson & David A. Asch, 2013. "The Production of and Market for New Physicians' Skill," NBER Working Papers 18678, National Bureau of Economic Research, Inc.
    7. Marie Allard & Izabela Jelovac & Pierre-Thomas Léger, 2014. "Payment mechanism and GP self-selection: capitation versus fee for service," International Journal of Health Economics and Management, Springer, vol. 14(2), pages 143-160, June.
    8. Liu, Ting & Albert Ma, Ching-to & Mak, Henry Y., 2018. "Incentives for motivated experts in a partnership," Journal of Economic Behavior & Organization, Elsevier, vol. 152(C), pages 296-313.
    9. Leila Agha & Keith Marzilli Ericson & Kimberley H. Geissler & James B. Rebitzer, 2022. "Team Relationships and Performance: Evidence from Healthcare Referral Networks," Management Science, INFORMS, vol. 68(5), pages 3735-3754, May.
    10. Joseph J. Doyle Jr. & Becky Staiger, 2021. "Physician Group Influences on Treatment Intensity and Health: Evidence from Physician Switchers," NBER Working Papers 29613, National Bureau of Economic Research, Inc.
    11. Andrew J. Epstein & Sean Nicholson & David A. Asch, 2016. "The Production of and Market for New Physicians’ Skill," American Journal of Health Economics, MIT Press, vol. 2(1), pages 41-65, January.

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