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Licensing growth and its effect on employment concentration

Author

Listed:
  • Thomas Snyder

    (University of Central Arkansas)

  • Elsa Mattson

    (University of Central Arkansas)

  • Alex Kanode

    (Clemson University)

Abstract

This study examines the relationship between the growth in state occupational licensing regulations and the change in the concentration of practitioners over time in the U.S. We exploit cross-state variances in occupational licensing data from the available datasets in 1993 and 2017. Our focus is on service-providing, low-to-moderate-income occupations. The general trend has been for states to license more occupations and to increase the burden of these licensed occupations over time. The states that had a relatively low level of licensing burdens in 1993 generally had the most growth in licensing. We find that counties with more concentrated service-providing industries are in states with higher licensing burdens, but an initial higher licensing burden is associated with lower levels of sector concentration over time.

Suggested Citation

  • Thomas Snyder & Elsa Mattson & Alex Kanode, 2022. "Licensing growth and its effect on employment concentration," Economics Bulletin, AccessEcon, vol. 42(2), pages 947-958.
    • Handle: RePEc:ebl:ecbull:eb-21-00725
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    File URL: http://www.accessecon.com/Pubs/EB/2022/Volume42/EB-22-V42-I2-P80.pdf
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    More about this item

    Keywords

    Occupational Licensing; Employment Quotient; State Regulation;
    All these keywords.

    JEL classification:

    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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