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Do Tougher Licensing Provisions Limit Occupational Entry? The Case of Dentistry

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  • Morris M. Kleiner
  • Robert T. Kudrle
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    Abstract

    The effect of licensing as a mechanism to control entry into occupations has been a neglected area of both regulation and labor market research. This study examines the role of occupational licensing for entry into dentistry, an occupation with standards that vary by state. Our research first closely replicates Freeman's previous work on labor market cobwebs by employing national data to examine purely market phenomena in the determination of training for the dental profession. We subsequently approximate the government barrier to practice in the profession by adding a weighted average state examination pass rate to the previous model. Next, we employ pooled cross-section time series analysis to explore market determinants of professional entry with state level data. Finally, these results are supplemented by measures of statutory and pass rate entry restrictiveness. Our most consistent evidence suggests that a higher state licensing failure rate deters entry into dental practice.

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    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3984.

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    Date of creation: Feb 1992
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    Handle: RePEc:nbr:nberwo:3984

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    1. Siow, Aloysius, 1984. "Occupational Choice under Uncertainty," Econometrica, Econometric Society, vol. 52(3), pages 631-45, May.
    2. Zarkin, Gary A, 1985. "Occupational Choice: An Application to the Market for Public School Teachers," The Quarterly Journal of Economics, MIT Press, vol. 100(2), pages 409-46, May.
    3. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 33(1), pages 125-132.
    4. Murnane, Richard J & Newstead, Stuart & Olsen, Randall J, 1985. "Comparing Public and Private Schools: The Puzzling Role of Selectivity Bias," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 23-35, January.
    5. Polachek, Solomon William, 1981. "Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 60-69, February.
    6. Orazem, Peter F & Mattila, J Peter, 1991. "Human Capital, Uncertain Wage Distributions, and Occupational and Educational Choices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(1), pages 103-22, February.
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    Cited by:
    1. Morris M. Kleiner & Robert T. Kudrle, 1997. "Does Regulation Affect Economic Outcomes?: The Case of Dentistry," NBER Working Papers 5869, National Bureau of Economic Research, Inc.

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