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The impact of potential labor supply on licensing exam difficulty

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  • Pagliero, Mario

Abstract

Entry into licensed professions requires meeting competency requirements, typically assessed through licensing examinations. This paper explores whether the number of individuals attempting to enter a profession (potential supply) affects the difficulty of the entry examination. The empirical results suggest that a larger potential supply may lead to more difficult licensing exams and lower pass rates. This implies that licensing may partially shelter the market from supply shocks and limit the impact of policies targeted at increasing labor supply.

Suggested Citation

  • Pagliero, Mario, 2013. "The impact of potential labor supply on licensing exam difficulty," Labour Economics, Elsevier, vol. 25(C), pages 141-152.
  • Handle: RePEc:eee:labeco:v:25:y:2013:i:c:p:141-152
    DOI: 10.1016/j.labeco.2013.04.007
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    3. Maria Koumenta & Mario Pagliero, 2017. "Occupational Licensing in the European Union: Coverage and Wage Effects," Carlo Alberto Notebooks 525, Collegio Carlo Alberto.
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    More about this item

    Keywords

    Occupational licensing; Minimum standards; Entry regulation; Legal market;
    All these keywords.

    JEL classification:

    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • K2 - Law and Economics - - Regulation and Business Law

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