The Prevalence and Effects of Occupational Licensing
AbstractThis study provides the first nation-wide analysis of the labor market implications of occupational licensing for the U.S. labor market, using data from a specially designed Gallup survey. We find that in 2006, 29 percent of the workforce was required to hold an occupational license from a government agency, which is a higher percentage than that found in studies that rely on state-level occupational licensing data. Workers who have higher levels of education are more likely to work in jobs that require a license. Union workers and government employees are more likely to have a license requirement than are nonunion or private sector employees. Our multivariate estimates suggest that licensing has about the same quantitative impact on wages as do unions -- that is about 15 percent, but unlike unions which reduce variance in wages, licensing does not significantly reduce wage dispersion for individuals in licensed jobs.
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Bibliographic InfoPaper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 1069.
Date of creation: Aug 2008
Date of revision:
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More information through EDIRC
occupational licensing; regulation; wages;
Other versions of this item:
- Kleiner, Morris M. & Krueger, Alan B., 2008. "The Prevalence and Effects of Occupational Licensing," IZA Discussion Papers 3675, Institute for the Study of Labor (IZA).
- Morris M. Kleiner & Alan B. Krueger, 2008. "The Prevalence and Effects of Occupational Licensing," NBER Working Papers 14308, National Bureau of Economic Research, Inc.
- Alan B. Krueger & Morris M. Kleiner, 2008. "The Prevalence and Effects of Occupational Licensing," Working Papers 1092, Princeton University, Department of Economics, Center for Economic Policy Studies..
- J8 - Labor and Demographic Economics - - Labor Standards
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-12-01 (All new papers)
- NEP-BEC-2008-12-01 (Business Economics)
- NEP-LAB-2008-12-01 (Labour Economics)
- NEP-REG-2008-12-01 (Regulation)
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.:
- Shapiro, Carl, 1986. "Investment, Moral Hazard, and Occupational Licensing," Review of Economic Studies, Wiley Blackwell, vol. 53(5), pages 843-62, October.
- Richard B. Freeman, 1981.
"Union Wage Practices and Wage Dispersion within Establishments,"
NBER Working Papers
0752, National Bureau of Economic Research, Inc.
- Richard B. Freeman, 1982. "Union wage practices and wage dispersion within establishments," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 36(1), pages 3-21, October.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Krueger to CEA
by Adam Ozimek in Modeled Behavior on 2011-08-29 11:35:20
- Alan Krueger nominated to chair the CEA
by Tyler Cowen in Marginal Revolution on 2011-08-29 11:22:50
- Alan S. Blinder & Alan B. Krueger, 2009.
"Alternative Measures of Offshorability: A Survey Approach,"
1169, Princeton University, Department of Economics, Center for Economic Policy Studies..
- Alan S. Blinder & Alan B. Krueger, 2009. "Alternative Measures of Offshorability: A Survey Approach," NBER Working Papers 15287, National Bureau of Economic Research, Inc.
- 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.
- 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.
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