Human Capital Investments Among Veterinarians

Abstract

Professional labor markets can be affected by alternating periods of excess or scarcity in labor. The phenomenon is most prevalent in labor markets where a substantial lag occurs between occupational choice and labor market entry. In this paper, a unique longitudinal dataset from veterinary labor markets is used to identify factors significantly associated with volatility in labor supply. Our econometric analysis establishes a statistically significant relationship between boom-bust cycles in labor and certain pertinent variables: entry-level earnings, a demand proxy, and supply-side features. Results support the notion that decision-makers gauge the expected levels of these variables when making career choices.