Advanced Search
MyIDEAS: Login to save this paper or follow this series

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

Contents:

Author Info

  • Morris M. Kleiner

    (University of Minnesota and NBER)

  • Alan B. Krueger

    (Princeton University and NBER)

Abstract

This study examines the extent and influence of occupational licensing in the U.S. using a specially designed national labor force survey. Specifically, we provide new ways of measuring occupational licensing and consider what types of regulatory requirements and what level of government oversight contribute to wage gains and variability. Estimates from the survey indicated that 35 percent of employees were either licensed or certified by the government, and that 29 percent were fully licensed. Another 3 percent 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 percent. We find that licensing is associated with about 14 percent higher wages, but the effect of governmental certification on pay is much smaller. Licensing by multiple political jurisdictions is associated with the highest wage gains relative to only local licensing. Specific requirements by the government for a worker to enter an occupation, such as education level and long internships, are positively associated with wages. We find little association between licensing and the variance of wages, in contrast to unions. Overall, our results show that occupational licensing is an important labor market phenomenon that can be measured in labor force surveys.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://arks.princeton.edu/ark:/88435/dsp01w3763678p
Download Restriction: no

Bibliographic Info

Paper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 1165.

as in new window
Length:
Date of creation: May 2009
Date of revision:
Handle: RePEc:pri:indrel:dsp01w3763678p

Contact details of provider:
Postal: Firestone Library, Princeton, New Jersey 08544-2098
Phone: 609 258-4041
Fax: 609 258-2907
Email:
Web page: http://www.irs.princeton.edu/
More information through EDIRC

Related research

Keywords: occupational licensing; labor survey;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
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.:
as in new window
  1. Shapiro, Carl, 1986. "Investment, Moral Hazard, and Occupational Licensing," Review of Economic Studies, Wiley Blackwell, vol. 53(5), pages 843-62, October.
  2. Richard B. Freeman, 1981. "Union Wage Practices and Wage Dispersion within Establishments," NBER Working Papers 0752, National Bureau of Economic Research, Inc.
  3. 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.
  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. Milton Friedman & Simon Kuznets, 1954. "Income from Independent Professional Practice," NBER Books, National Bureau of Economic Research, Inc, number frie54-1, octubre-d.
  6. 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.
  7. 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.
  8. 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.
  9. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
Full references (including those not matched with items on IDEAS)

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
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Robert I. Lerman, 2012. "Can the United States Expand Apprenticeship? Lessons from Experience," Working Papers 2012-18, American University, Department of Economics.
  2. Mario Pagliero, 2007. "The Impact of Potential Labor Supply on Licensing Exam Difficulty," Carlo Alberto Notebooks 53, Collegio Carlo Alberto, revised 2013.
  3. 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.
  4. 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.
  5. 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.
  6. Lerman, Robert I., 2012. "Can the United States Expand Apprenticeship? Lessons from Experience," IZA Policy Papers 46, Institute for the Study of Labor (IZA).
  7. 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.
  8. David Marsden, 2010. "The End of National Models in Employment Relations?," CEP Discussion Papers dp0998, Centre for Economic Performance, LSE.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pri:indrel:dsp01w3763678p. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Long).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.