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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
    1. Morris M. Kleiner & Alan B. Krueger, 2010. "The Prevalence and Effects of Occupational Licensing," British Journal of Industrial Relations, London School of Economics, vol. 48(4), pages 676-687, December.
    2. Raj Chetty & Nathaniel Hendren, 2018. "The Impacts of Neighborhoods on Intergenerational Mobility I: Childhood Exposure Effects," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1107-1162.
    3. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
    4. Meszaros, John, 2018. "Inequality and unionization within the United States," The Quarterly Review of Economics and Finance, Elsevier, vol. 67(C), pages 326-333.
    5. Meehan, Brian, 2015. "The impact of licensing requirements on industrial organization and labor: Evidence from the U.S. private security market," International Review of Law and Economics, Elsevier, vol. 42(C), pages 113-121.
    6. 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.
    7. 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.
    8. Morris M. Kleiner, 2000. "Occupational Licensing," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 189-202, Fall.
    9. Raj Chetty & Nathaniel Hendren & Lawrence F. Katz, 2016. "The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Experiment," American Economic Review, American Economic Association, vol. 106(4), pages 855-902, April.
    10. Grengs, Joe, 2010. "Job accessibility and the modal mismatch in Detroit," Journal of Transport Geography, Elsevier, vol. 18(1), pages 42-54.
    Full references (including those not matched with items on IDEAS)

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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.

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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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