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Occupational Licensing

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Author Info
Morris M. Kleiner
Abstract

The study of the regulation of occupations has a long and distinguished tradition in economics. In this paper, I present the central arguments and unresolved issues involving the costs and benefits of occupational licensing. The main benefits that are suggested for occupational licensing involve improving quality for those persons receiving the service. In contrast, the costs attributed to this labor market institution are that it restricts the supply of labor to the occupation and thereby drives up the price of labor as well as of services rendered. Alternative public policies for this institution are identified.

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Publisher Info
Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 14 (2000)
Issue (Month): 4 (Fall)
Pages: 189-202
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Handle: RePEc:aea:jecper:v:14:y:2000:i:4:p:189-202

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Timothy R. Muzondo & Bohumir Pazderka, 1980. "Occupational Licensing and Professional Incomes in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 13(4), pages 659-67, November. [Downloadable!] (restricted)
  2. Perloff, Jeffrey M, 1980. "The Impact of Licensing Laws on Wage Changes in the Construction Industry," Journal of Law & Economics, University of Chicago Press, vol. 23(2), pages 409-28, October.
  3. Shapiro, Carl, 1986. "Investment, Moral Hazard, and Occupational Licensing," Review of Economic Studies, Blackwell Publishing, vol. 53(5), pages 843-62, October. [Downloadable!] (restricted)
  4. Kleiner, Morris M & Kudrle, Robert T, 2000. "Does Regulation Affect Economic Outcomes? The Case of Dentistry," Journal of Law & Economics, University of Chicago Press, vol. 43(2), pages 547-82, October.
  5. Robert J. Thornton & Andrew R. Weintraub, 1979. "Licensing in the barbering profession," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 32(2), pages 242-249, January.
  6. Freeman, Richard B & Kleiner, Morris M, 1990. "The Impact of New Unionization on Wages and Working Conditions," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages S8-25, January. [Downloadable!] (restricted)
  7. Alan B. Krueger, 2000. "From Bismarck to Maastricht: The March to European Union and the Labor Compact," NBER Working Papers 7456, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Maurizi, Alex, 1974. "Occupational Licensing and the Public Interest," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 399-413, Part I, M. [Downloadable!] (restricted)
  9. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Joshua D. Angrist & Jonathan Guryan, 2004. "Teacher Testing, Teacher Education, and Teacher Characteristics," American Economic Review, American Economic Association, vol. 94(2), pages 241-246, May. [Downloadable!]
  2. Angrist, Joshua D. & Guryan, Jonathan, 2005. "Does Teacher Testing Raise Teacher Quality? Evidence from State Certification Requirements," IZA Discussion Papers 1500, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Kugler, Adriana D. & Sauer, Robert M, 2003. "Doctors without Borders: The Returns to an Occupational License for Soviet Immigrant Physicians in Israel," CEPR Discussion Papers 3683, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  4. Kugler, Adriana D. & Sauer, Robert M., 2002. "Doctors Without Borders: The Returns to an Occupational License for Soviet Immigrant Physicians in Israel," IZA Discussion Papers 634, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Susanne Prantl & Alexandra Spitz-Oener, 2009. "How does entry regulation influence entry into selfemployment and occupational mobility?," Discussion Papers 267, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
    Other versions:
  6. E. Frank Stephenson & Erin E. Wendt, 2009. "Occupational Licensing: Scant Treatment in Labor Texts," Econ Journal Watch, Atlas Economic Research Foundation, vol. 6(2), pages 181-194, May. [Downloadable!]
  7. Runli Xie, 2009. "Trade-Off Between Consumption Growth and Inequality: Theory and Evidence for Germany," SFB 649 Discussion Papers SFB649DP2009-034, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany. [Downloadable!]
  8. V. Joseph Hotz & Mo Xiao, 2005. "The Impact of Minimum Quality Standards on Firm Entry, Exit and Product Quality: The Case of the Child Care Market," Working Papers 05-28, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  9. Yi-Chun Chen & Siyang Xiong, 2008. "Topologies on Types: Connections," Discussion Papers 1470, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  10. Richard W. Hurd & John Bunge, 2004. "Unionization of Professional and Technical Workers. The Labor Market and Institutional Transformation," NBER Chapters, in: Emerging Labor Market Institutions for the Twenty-First Century, pages 179-206 National Bureau of Economic Research, Inc. [Downloadable!]
  11. Eduardo de Carvalho Andrade & Luciano I. de Castro, 2008. "Tougher Educational Exam Leading to Worse Selection," Discussion Papers 1469, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  12. David Barker, 2008. "Ethics and Lobbying: The Case of Real Estate Brokerage," Journal of Business Ethics, Springer, vol. 80(1), pages 23-35, June. [Downloadable!] (restricted)
  13. Adriana Kugler & Robert Sauer, 2002. "Doctors without Borders: The Returns to an Occupational License for Soviet Immigrant Physicians in Israel," Economics Working Papers 648, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  14. Edward Timmons & Robert Thornton, 2008. "The Effects of Licensing on the Wages of Radiologic Technologists," Journal of Labor Research, Springer, vol. 29(4), pages 333-346, December. [Downloadable!] (restricted)
  15. Sean Nicholson, 2003. "Barriers to Entering Medical Specialties," NBER Working Papers 9649, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Georg Meran & Reimund Schwarze, 2005. "Can Minimum Prices Assure the Quality of Professional Services?," Discussion Papers of DIW Berlin 531, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  17. V. Joseph Hotz & Mo Xiao, 2005. "The Impact of Minimum Quality Standards on Firm Entry, Exit and Product Quality: the Case of the Child Care Market," NBER Working Papers 11873, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  18. Karsten Mause, 2008. "Rethinking governmental licensing of higher education institutions," European Journal of Law and Economics, Springer, vol. 25(1), pages 57-78, February. [Downloadable!] (restricted)
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