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Have license, will travel: Measuring the effects of universal licensing recognition on mobility

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  • Deyo, Darwyyn
  • Plemmons, Alicia

Abstract

Universal licensing recognition (ULR) is a recent policy trend in which states recognize other states’ licensing credentials, lowering labor market barriers for interstate migrants. Using county-to-county migration files from the Internal Revenue Service and policy-enactment dates from the Knee Center for the Study of Occupational Regulation, we find a sizeable increase in average net migration (eleven tax filers, twenty-two dependents) from border counties in non-ULR states to contiguous border counties in ULR states each year, as well as an increase in adjusted gross income tax receipts in the ULR counties ($1.7 million). These effects dissipate at the state level.

Suggested Citation

  • Deyo, Darwyyn & Plemmons, Alicia, 2022. "Have license, will travel: Measuring the effects of universal licensing recognition on mobility," Economics Letters, Elsevier, vol. 219(C).
    • Handle: RePEc:eee:ecolet:v:219:y:2022:i:c:s0165176522002920
    DOI: 10.1016/j.econlet.2022.110800
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    References listed on IDEAS

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    1. Morris M. Kleiner & Alan B. Krueger, 2013. "Analyzing the Extent and Influence of Occupational Licensing on the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 173-202.
    2. Shawn M. Rohlin & Amanda Ross, 2016. "Does Bankruptcy Law Affect Business Turnover? Evidence From New And Existing Business," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 361-374, January.
    3. Peter Q. Blair & Bobby W. Chung, 2021. "A Model of Occupational Licensing and Statistical Discrimination," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 201-205, May.
    4. Alicia Plemmons, 2022. "Occupational licensing's effects on firm location and employment in the United States," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 735-760, December.
    5. Peter Q. Blair & Bobby W. Chung, 2021. "Informed Choices: A Model of Occupational Licensing and Statistical Discrimination," Upjohn Working Papers 21-351, W.E. Upjohn Institute for Employment Research.
    6. Edward J Timmons & Anna Mills, 2018. "Bringing the Effects of Occupational Licensing into Focus: Optician Licensing in the United States," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(1), pages 69-83, January.
    7. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
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    Cited by:

    1. Stephan D. Whitaker, 2023. "Understanding Migration Trends to Prepare for the Post-Pandemic Future," Cleveland Fed Regional Policy Report, Federal Reserve Bank of Cleveland, issue 20230801, pages 1-32, August.

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