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Licensing Exam Difficulty and Entry Salaries in the US Market for Lawyers

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  • Mario Pagliero

Abstract

This article provides evidence of a correlation between licensing exam difficulty and salaries in a regulated profession. Exam difficulty is positively correlated with salaries across states and over time, both at the aggregate and individual state levels. The magnitude of this correlation is substantial: a 1 per cent increase in exam difficulty implies a 1.7 per cent increase in median entry-level salaries. Exam difficulty does not significantly affect the inter-quartile difference in salaries. Copyright (c) Blackwell Publishing Ltd/London School of Economics 2010.

Suggested Citation

  • 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.
  • Handle: RePEc:bla:brjirl:v:48:y:2010:i:4:p:726-739
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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-8543.2010.00810.x
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    References listed on IDEAS

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    1. Morris M. Kleiner, 2000. "Occupational Licensing," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 189-202, Fall.
    2. Leffler, Keith B, 1978. "Physician Licensure: Competition and Monopoly in American Medicine," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 165-186, April.
    3. Morris M. Kleiner, 2006. "Licensing Occupations: Ensuring Quality or Restricting Competition?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number lo, November.
    4. 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 547-582, October.
    5. Haas-Wilson, Deborah, 1986. "The Effect of Commercial Practice Restrictions: The Case of Optometry," Journal of Law and Economics, University of Chicago Press, vol. 29(1), pages 165-186, April.
    6. Shepard, Lawrence, 1978. "Licensing Restrictions and the Cost of Dental Care," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 187-201, April.
    7. 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.
    8. Richard B. Freeman, 1982. "Union Wage Practices and Wage Dispersion within Establishments," ILR Review, Cornell University, ILR School, vol. 36(1), pages 3-21, October.
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    Citations

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    Cited by:

    1. Peter Blair & Bobby Chung, 2017. "Occupational Licensing Reduces Racial and Gender Wage Gaps: Evidence from the Survey of Income and Program Participation," Working Papers 2017-50, Human Capital and Economic Opportunity Working Group.
    2. Mario Pagliero & Edward Timmons, 2013. "Occupational Regulation in the European Legal Market," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(2), pages 243-265, August.
    3. Morris M. Kleiner & Alan B. Krueger, 2013. "Analyzing the Extent and Influence of Occupational Licensing on the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 173-202.
    4. Pagliero, Mario, 2013. "The impact of potential labor supply on licensing exam difficulty," Labour Economics, Elsevier, vol. 25(C), pages 141-152.
    5. Michele Pellizzari & Giovanni Pica, 2010. "Liberalizing Professional Services: Evidence from Italian Lawyers," Working Papers 372, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    6. Pagliero, Mario, 2011. "What is the objective of professional licensing? Evidence from the US market for lawyers," International Journal of Industrial Organization, Elsevier, vol. 29(4), pages 473-483, July.
    7. Morris M. Kleiner & Alan B. Krueger, 2009. "Analyzing the Extent and Influence of Occupational Licensing on the Labor Market," Working Papers 1165, Princeton University, Department of Economics, Industrial Relations Section..
    8. repec:bla:indres:v:56:y:2017:i:4:p:640-661 is not listed on IDEAS
    9. Maury Gittleman & Morris M. Kleiner, 2016. "Wage Effects of Unionization and Occupational Licensing Coverage in the United States," ILR Review, Cornell University, ILR School, vol. 69(1), pages 142-172, January.
    10. repec:pri:cepsud:191krueger is not listed on IDEAS
    11. Suyoun Han & Morris M. Kleiner, 2016. "Analyzing the Influence of Occupational Licensing Duration and Grandfathering on Labor Market Outcomes," NBER Working Papers 22810, National Bureau of Economic Research, Inc.
    12. Mario Pagliero & Edward Timmons, 2012. "Occupational Regulation in the European Legal Market," Working papers 27, Former Department of Economics and Public Finance "G. Prato", University of Torino.
    13. Kleiner, Morris M. & Han, Suyoun, 2017. "Analyzing the Influence of Occupational Licensing Duration and Grandfathering on Labor Market Outcomes," Staff Report 556, Federal Reserve Bank of Minneapolis.
    14. Camille Chaserant & Sophie Harnay, 2013. "The regulation of quality in the market for legal services: Taking the heterogeneity of legal services seriously," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(2), pages 267-291, August.
    15. J. Mark Ramseyer & Eric Rasmusen, 2013. "Lowering the Bar to Raise the Bar: Licensing Difficulty and Attorney Quality in Japan," Working Papers 2013-12, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    16. repec:bla:indres:v:56:y:2017:i:2:p:351-381 is not listed on IDEAS

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