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Analyzing the Extent and Influence of Occupational Licensing on the Labor Market

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  • Morris M. Kleiner
  • Alan B. Krueger

Abstract

This study examines occupational licensing in the United States using a specially designed national labor force survey. Estimates from the survey indicated that 35% of employees were either licensed or certified by the government and that 29% were licensed. Another 3% stated that all who worked in their job would eventually be required to be certified or licensed, bringing the total that are or eventually must be licensed or certified by government to 38%. We find that licensing is associated with about 18% higher wages but that the effect of governmental certification on pay is much smaller.

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File URL: http://www.jstor.org/stable/full/10.1086/669060
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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 31 (2013)
Issue (Month): S1 ()
Pages: S173 - S202

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Handle: RePEc:ucp:jlabec:doi:10.1086/669060

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References

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  1. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2000. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," NBER Working Papers 7831, National Bureau of Economic Research, Inc.
  2. 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.
  3. Card, David, 1996. "The Effect of Unions on the Structure of Wages: A Longitudinal Analysis," Econometrica, Econometric Society, vol. 64(4), pages 957-79, July.
  4. Morris M. Kleiner & Alan B. Krueger, 2008. "The Prevalence and Effects of Occupational Licensing," NBER Working Papers 14308, National Bureau of Economic Research, Inc.
  5. 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.
  6. Shapiro, Carl, 1986. "Investment, Moral Hazard, and Occupational Licensing," Review of Economic Studies, Wiley Blackwell, vol. 53(5), pages 843-62, October.
  7. Richard B. Freeman, 1981. "Union Wage Practices and Wage Dispersion within Establishments," NBER Working Papers 0752, National Bureau of Economic Research, Inc.
  8. Milton Friedman & Simon Kuznets, 1954. "Income from Independent Professional Practice," NBER Books, National Bureau of Economic Research, Inc, number frie54-1, May.
  9. Mario Pagliero, 2010. "Licensing Exam Difficulty and Entry Salaries in the US Market for Lawyers," British Journal of Industrial Relations, London School of Economics, vol. 48(4), pages 726-739, December.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Social-Democratic Feudalism and Its Upper Paleolithic Impetus
    by Daniel B. Klein in cato unbound on 2010-12-20 19:58:27
  2. Occupational licensing: NZ Edition
    by Eric Crampton in Offsetting Behaviour on 2014-04-08 19:00:00
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Cited by:
  1. Pagliero, Mario, 2013. "The impact of potential labor supply on licensing exam difficulty," Labour Economics, Elsevier, vol. 25(C), pages 141-152.
  2. Cecilia Elena Rouse, 2013. "Comment on "A Pollution Theory of Discrimination: Male and Female Differences in Occupations and Earnings"," NBER Chapters, in: Human Capital in History: The American Record National Bureau of Economic Research, Inc.
  3. Morris M. Kleiner & Charles Wheelan, 2010. "Occupational Licensing Matters: Wages, Quality and Social Costs," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 8(3), pages 29-33, October.
  4. Robert I. Lerman, 2012. "Can the United States Expand Apprenticeship? Lessons from Experience," Working Papers 2012-18, American University, Department of Economics.
  5. David Marsden, 2010. "The End of National Models in Employment Relations?," CEP Discussion Papers dp0998, Centre for Economic Performance, LSE.
  6. Park, Jee-Hyeong & Spurr, Stephen J. & Chang, Sheng-Kai, 2009. "A Model of Hierarchical Professionals: Cooperation and Conflict between Anesthesiologists and CRNAs," CEI Working Paper Series 2009-13, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
  7. David Marsden, 2010. "The end of national models in employment relations?," LSE Research Online Documents on Economics 48913, London School of Economics and Political Science, LSE Library.
  8. Lerman, Robert I., 2012. "Can the United States Expand Apprenticeship? Lessons from Experience," IZA Policy Papers 46, Institute for the Study of Labor (IZA).

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