Was Occupational Licensing Good for Minorities? A Critique of Marc Law and Mindy Marks
AbstractA 2009 Journal of Law and Economics article by Marc T. Law and Mindy S. Marks suggests that during the period 1890-1950 occupational licensing did not tend to affect blacks and women adversely. The biggest problem with the paper is that a Census-reported practitioner in a licensing state is not necessarily licensed—a fact never mentioned by Law and Marks—and yet that fact should greatly affect their treatment of the data and results. Information about plumbers in Maryland reveals that in treating the Census number of black plumbers as licensed black plumbers—as Law and Marks implicitly do—they overstate the actual number by 4700 percent. It is therefore unsurprising that they do not find plumbing licensing to have negatively impacted blacks. The paper suffers from several other problems, as well, including: Law and Marks lump certification in with licensing; there is a sample selection bias in their method for including an occupation in the study; several of their findings are based on extremely low participation by blacks and women; they treat women as the “minority” in the field of nursing. Because of these and other problems, including the results of falsification tests, we judge their conclusions to be highly doubtful.
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Bibliographic InfoArticle provided by Econ Journal Watch in its journal Econ Journal Watch.
Volume (Year): 9 (2012)
Issue (Month): 3 (September)
Occupational licensure; licensing; race; gender; discrimination;
Find related papers by JEL classification:
- D18 - Microeconomics - - Household Behavior - - - Consumer Protection
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
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.:
- Leland, Hayne E, 1979. "Quacks, Lemons, and Licensing: A Theory of Minimum Quality Standards," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1328-46, December.
- 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.
- Marc T. Law & Sukkoo Kim, 2004.
"Specialization and Regulation: The Rise of Professionals and the Emergence of Occupational Licensing Regulation,"
NBER Working Papers
10467, National Bureau of Economic Research, Inc.
- Law, Marc T. & Kim, Sukkoo, 2005. "Specialization and Regulation: The Rise of Professionals and the Emergence of Occupational Licensing Regulation," The Journal of Economic History, Cambridge University Press, vol. 65(03), pages 723-756, September.
- Morris M. Kleiner, 2006. "Licensing Occupations: Ensuring Quality or Restricting Competition?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number lo, October.
- David Barker, 2008. "Ethics and Lobbying: The Case of Real Estate Brokerage," Journal of Business Ethics, Springer, vol. 80(1), pages 23-35, June.
- Klein, Daniel, 2012. "Knowledge and Coordination: A Liberal Interpretation," OUP Catalogue, Oxford University Press, number 9780199794126.
- Marc T. Law & Mindy S. Marks, 2009. "Effects of Occupational Licensing Laws on Minorities: Evidence from the Progressive Era," Journal of Law and Economics, University of Chicago Press, vol. 52(2), pages 351-366, 05.
- Shirley Svorny, 2004. "Licensing Doctors: Do Economists Agree?," Econ Journal Watch, Econ Journal Watch, vol. 1(2), pages 279-305, August.
- E. Frank Stephenson & Erin E. Wendt, 2009. "Occupational Licensing: Scant Treatment in Labor Texts," Econ Journal Watch, Econ Journal Watch, vol. 6(2), pages 181-194, May.
- Maya N. Federman & David E. Harrington & Kathy J. Krynski, 2006. "The Impact of State Licensing Regulations on Low-Skilled Immigrants: The Case of Vietnamese Manicurists," American Economic Review, American Economic Association, vol. 96(2), pages 237-241, May.
- Marc T. Law & Mindy S. Marks, 2012. "Occupational Licensing and Minorities: A Reply to Klein, Powell, and Vorotnikov," Econ Journal Watch, Econ Journal Watch, vol. 9(3), pages 234-255, September.
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