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Does Regulation Affect Economic Outcomes? The Case of Dentistry

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Author Info
Kleiner, Morris M
Kudrle, Robert T
Abstract

This study examines the role of variations in occupational licensing policies in improving the quality of services provided to consumers and the effect of restrictive regulations on the prices of certain services and on the earnings of practitioners. Theory suggests that more restrictive licensing may raise prices and at the same time raise demand by reducing uncertainty about the quality of the services. This article uses unique data on the dental health of incoming Air Force personnel to analyze empirically the effects of varying licensing stringency among the states. It finds that tougher licensing does not improve outcomes, but it does raise prices for consumers and the earnings of practitioners. These results cast doubt on the principal public interest argument in favor of more stringent state licensing practices. Copyright 2000 by the University of Chicago.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Law & Economics.

Volume (Year): 43 (2000)
Issue (Month): 2 (October)
Pages: 547-82
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Handle: RePEc:ucp:jlawec:v:43:y:2000:i:2:p:547-82

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  1. Angrist, Joshua D. & Guryan, Jonathan, 2005. "Does Teacher Testing Raise Teacher Quality? Evidence from State Certification Requirements," IZA Discussion Papers 1500, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Kugler, Adriana D. & Sauer, Robert M, 2003. "Doctors without Borders: The Returns to an Occupational License for Soviet Immigrant Physicians in Israel," CEPR Discussion Papers 3683, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. E. Frank Stephenson & Erin E. Wendt, 2009. "Occupational Licensing: Scant Treatment in Labor Texts," Econ Journal Watch, Atlas Economic Research Foundation, vol. 6(2), pages 181-194, May. [Downloadable!]
  4. V. Joseph Hotz & Mo Xiao, 2005. "The Impact of Minimum Quality Standards on Firm Entry, Exit and Product Quality: The Case of the Child Care Market," Working Papers 05-28, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  5. Mario Pagliero, 2007. "The Impact of Potential Labor Supply on Licensing Exam Difficulty in the US Market for Lawyers," Carlo Alberto Notebooks 53, Collegio Carlo Alberto, revised 2009. [Downloadable!]
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  6. Morris M. Kleiner, 2000. "Occupational Licensing," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 189-202, Fall. [Downloadable!] (restricted)
  7. Morris M. Kleiner & Richard M. Todd, 2009. "Mortgage Broker Regulations That Matter: Analyzing Earnings, Employment, and Outcomes for Consumers," NBER Chapters, in: Studies of Labor Market Intermediation, pages 183-231 National Bureau of Economic Research, Inc. [Downloadable!]
  8. V. Joseph Hotz & Mo Xiao, 2005. "The Impact of Minimum Quality Standards on Firm Entry, Exit and Product Quality: the Case of the Child Care Market," NBER Working Papers 11873, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Morris M. Kleiner & Richard M. Todd, 2007. "Mortgage Broker Regulations That Matter: Analyzing Earnings, Employment, and Outcomes for Consumers," NBER Working Papers 13684, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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