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The effects of growth in occupational licensing on intergenerational mobility

Author

Listed:
  • Brian J Meehan

    (Berry College Campbell School of Business)

  • Edward Timmons

    (Saint Francis University)

  • Andrew Meehan

    (Central Michigan University)

  • Ilya Kukaev

    (Lehigh University)

Abstract

We use a newly produced data set on growth in occupational licensing of low-income occupations to estimate the relationship between growth in occupational licensing and intergenerational mobility. Our empirical results suggest growth in state licensing is associated with a 1.6% to 6.2% reduction in absolute mobility at the county level. Growth in licensing is also associated with increases in county level Gini coefficients (and thus income inequality) ranging from 3.9% to 15.4%. The relationship between the growth in licensed occupations and absolute mobility provides suggestive evidence of loss in opportunity and reduced mobility for potential entrants into these occupations.

Suggested Citation

  • Brian J Meehan & Edward Timmons & Andrew Meehan & Ilya Kukaev, 2019. "The effects of growth in occupational licensing on intergenerational mobility," Economics Bulletin, AccessEcon, vol. 39(2), pages 1516-1528.
    • Handle: RePEc:ebl:ecbull:eb-18-00465
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I2-P143.pdf
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    References listed on IDEAS

    as
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    9. Edward J Timmons & Anna Mills, 2018. "Bringing the Effects of Occupational Licensing into Focus: Optician Licensing in the United States," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(1), pages 69-83, January.
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    Cited by:

    1. Alicia Plemmons, 2022. "Occupational licensing's effects on firm location and employment in the United States," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 735-760, December.
    2. Andres Marroquin & Edward J. Timmons, 2024. "Economic values, support of labor unions, and salience of occupational licensing in the European Union," Economics Bulletin, AccessEcon, vol. 44(4), pages 1338-1347.
    3. Dean, James & Geloso, Vincent, 2024. "Poverty spells and economic freedom: Canadian evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 282-296.

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    More about this item

    Keywords

    Intergenerational Mobility; Inequality; Occupational Licensing;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • K2 - Law and Economics - - Regulation and Business Law

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