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Licensing Exam Difficulty and Entry Salaries in the US Market for Lawyers

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  • Mario Pagliero

Abstract

This article provides evidence of a correlation between licensing exam difficulty and salaries in a regulated profession. Exam difficulty is positively correlated with salaries across states and over time, both at the aggregate and individual state levels. The magnitude of this correlation is substantial: a 1 per cent increase in exam difficulty implies a 1.7 per cent increase in median entry-level salaries. Exam difficulty does not significantly affect the inter-quartile difference in salaries. Copyright (c) Blackwell Publishing Ltd/London School of Economics 2010.

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Bibliographic Info

Article provided by London School of Economics in its journal British Journal of Industrial Relations.

Volume (Year): 48 (2010)
Issue (Month): 4 (December)
Pages: 726-739

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Handle: RePEc:bla:brjirl:v:48:y:2010:i:4:p:726-739

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Cited by:
  1. Morris M. Kleiner & Alan B. Krueger, 2009. "Analyzing the Extent and Influence of Occupational Licensing on the Labor Market," NBER Working Papers 14979, National Bureau of Economic Research, Inc.
  2. J. Mark Ramseyer & Eric Rasmusen, 2013. "Lowering the Bar to Raise the Bar: Licensing Difficulty and Attorney Quality in Japan," Working Papers 2013-12, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
  3. Maury Gittleman & Morris M. Kleiner, 2013. "Wage Effects of Unionization and Occupational Licensing Coverage in the United States," NBER Working Papers 19061, National Bureau of Economic Research, Inc.
  4. Mario Pagliero, 2007. "The Impact of Potential Labor Supply on Licensing Exam Difficulty," Carlo Alberto Notebooks 53, Collegio Carlo Alberto, revised 2013.
  5. Camille Chaserant & Sophie Harnay, 2013. "The regulation of quality in the market for legal services: Taking the heterogeneity of legal services seriously," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(2), pages 267-291, August.
  6. Michele Pellizzari & Giovanni Pica, 2010. "Liberalizing Professional Services: Evidence from Italian Lawyers," Working Papers 372, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  7. Mario Pagliero & Edward Timmons, 2013. "Occupational Regulation in the European Legal Market," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(2), pages 243-265, August.
  8. Pagliero, Mario, 2011. "What is the objective of professional licensing? Evidence from the US market for lawyers," International Journal of Industrial Organization, Elsevier, vol. 29(4), pages 473-483, July.

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