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From Certification To Licensure: Evidence From Registered And Practical Nurses In The United States, 1950-1970

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  • Marc T. Law
  • Mindy S. Marks

Abstract

In this paper we use individual-level census data on registered and practical nurses in the United States from 1950-70 to determine the effect that the switch from certification to licensure had on wages and participation in the registered and practical nurse professions. We examine these occupations to take advantage of a quasi-experiment afforded by the fact that, by the beginning of our sample, all states already had certification in place and some states already required a license. During the subsequent decade several states switched from certification to a mandatory licensing regime while others did not. Accordingly, we infer the effect of licensure in a differences-in-differences framework that uses states that did not change their regulatory regime as a control. Interestingly, we find that the shift from certification to mandatory licensing had little to no effect on the wages or the participation rate of practical and registered nurses.

Suggested Citation

  • Marc T. Law & Mindy S. Marks, 2013. "From Certification To Licensure: Evidence From Registered And Practical Nurses In The United States, 1950-1970," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(2), pages 177-198, August.
    • Handle: RePEc:liu:liucej:v:10:y:2013:i:2:p:177-198
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    References listed on IDEAS

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    1. William White, 1987. "The introduction of professional regulation and labor market conditions," Policy Sciences, Springer;Society of Policy Sciences, vol. 20(1), pages 27-51, April.
    2. 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.
    3. 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(3), pages 723-756, September.
    4. 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 1328-1346, December.
    5. David E. Kalist & Stephen J. Spurr, 2004. "The Effect of State Laws on the Supply of Advanced Practice Nurses," International Journal of Health Economics and Management, Springer, vol. 4(4), pages 271-281, December.
    6. Morris M. Kleiner, 2006. "Licensing Occupations: Ensuring Quality or Restricting Competition?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number lo, August.
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    Cited by:

    1. Morikawa, Masayuki, 2018. "Occupational licenses and labor market outcomes in Japan," Japan and the World Economy, Elsevier, vol. 48(C), pages 45-56.
    2. Suyoun Han & Morris M. Kleiner, 2016. "Analyzing the Influence of Occupational Licensing Duration and Grandfathering on Labor Market Outcomes," NBER Working Papers 22810, National Bureau of Economic Research, Inc.
    3. 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.
    4. MORIKAWA Masayuki, 2017. "Occupational Licenses and Labor Market Outcomes," Discussion papers 17078, Research Institute of Economy, Trade and Industry (RIETI).
    5. Suyoun Han & Morris M. Kleiner, 2017. "Analyzing the Influence of Occupational Licensing Duration and Grandfathering on Labor Market Outcomes," Staff Report 556, Federal Reserve Bank of Minneapolis.
    6. Marc T. Law & Mindy S. Marks, 2017. "The Labor-Market Effects of Occupational Licensing Laws in Nursing," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(4), pages 640-661, October.
    7. Daniel B. Klein & Benjamin Powell & Evgeny S. Vorotnikov, 2012. "Was Occupational Licensing Good for Minorities? A Critique of Marc Law and Mindy Marks," Econ Journal Watch, Econ Journal Watch, vol. 9(3), pages 210-233, September.

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    More about this item

    Keywords

    occupational licensing; regulation; political economy;
    All these keywords.

    JEL classification:

    • K2 - Law and Economics - - Regulation and Business Law
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

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