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Barber Licensure and the Supply of Barber Shops: Evidence from US States

Author

Listed:
  • Joshua Hall

    (West Virginia University, Department of Economics)

  • Shree B. Pokharel

    (West Virginia University, Department of Economics)

Abstract

Occupational licensure is on the rise. According to Kleiner (2015), over 29 percent of the U.S. workforce required some form of license. While a number of studies estimate the wage effects of occupational licensure, few studies look at the impact of licensure on entry into new business formation. In this paper we focus on the impact on barber shops, since many barber shops are sole proprietorships. Using state-level data on the occupational licensure of barbers from the Institute for Justice, we find that the number of exams required to become a barber is negatively related to the number of barber shops. We find no evidence that other state-level regulations of barbering such as average fees or the minimum age necessary to practice are associated with fewer barber shops.

Suggested Citation

  • Joshua Hall & Shree B. Pokharel, 2016. "Barber Licensure and the Supply of Barber Shops: Evidence from US States," Working Papers 16-15, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:16-15
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    File URL: http://busecon.wvu.edu/phd_economics/pdf/16-15.pdf
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    References listed on IDEAS

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    Cited by:

    1. Dick M. Carpenter & Lisa Knepper & Kyle Sweetland & Jennifer McDonald, 2018. "The Continuing Burden of Occupational Licensing in the United States," Economic Affairs, Wiley Blackwell, vol. 38(3), pages 380-405, October.
    2. Thomas Snyder & Elsa Mattson & Alex Kanode, 2022. "Licensing growth and its effect on employment concentration," Economics Bulletin, AccessEcon, vol. 42(2), pages 947-958.
    3. Brian Meehan & E. Frank Stephenson, 2020. "Reducing a Barrier to Entry: The 120/150 CPA Licensing Rule," Journal of Labor Research, Springer, vol. 41(4), pages 382-402, December.

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    More about this item

    Keywords

    barbering; governmental occupational regulation; total barber shops per capita;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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