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Occupational Licensing

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  • Morris M. Kleiner
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    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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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.14.4.189
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    Bibliographic 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

    Note: DOI: 10.1257/jep.14.4.189
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    1. 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.
    2. 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.
    3. Robert J. Thornton & Andrew R. Weintraub, 1979. "Licensing in the barbering profession," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 32(2), pages 242-249, January.
    4. Alan Krueger, 1999. "From Bismarck to Maastricht: The March to European Union and the Labor Compact," Working Papers 803, Princeton University, Department of Economics, Industrial Relations Section..
    5. 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.
    6. Kleiner, Morris M & Kudrle, Robert T, 2000. "Does Regulation Affect Economic Outcomes? The Case of Dentistry," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 547-82, October.
    7. Shapiro, Carl, 1986. "Investment, Moral Hazard, and Occupational Licensing," Review of Economic Studies, Wiley Blackwell, vol. 53(5), pages 843-62, October.
    8. 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.
    9. Perloff, Jeffrey M, 1980. "The Impact of Licensing Laws on Wage Changes in the Construction Industry," Journal of Law and Economics, University of Chicago Press, vol. 23(2), pages 409-28, October.
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