Occupational Licensing and Minorities: A Reply to Klein, Powell, and Vorotnikov
In this paper we respond to Daniel Klein, Benjamin Powell, and Evgeny Vorotnikov’s (henceforth KPV) critique of our 2009 Journal of Law and Economics paper on the effects of occupational regulation on the employment of female and black workers. Our view is that KPV have not successfully made the case that our study is “rife with problems,” that our findings are “simply spurious correlations,” and that our conclusions are “highly doubtful.” In our reply we take on each of KPV’s criticisms. Specifically, we demonstrate that neither (1) our use of census data; nor (2) the problem of uneven enforcement of licensing laws; nor (3) measurement error in the timing and stringency of licensing laws; nor (4) the omitted variables that KPV identify systematically bias our estimates in favor of finding positive effects. In each of these instances, we show that the problems that KPV have identified would either bias our estimates toward zero or in the opposite direction of what we do find. Additionally, we argue that KPV’s falsification tests do not clearly show that our empirical methodology is biased. Finally, we estimate new regressions in light of KPV’s suggestions and find results that are consistent with our original conclusions. Accordingly, KPV have failed to mount a persuasive critique of our original paper.
Volume (Year): 9 (2012)
Issue (Month): 3 (September)
|Contact details of provider:|| Postal: |
Phone: (703) 993-1151
Web page: http://econjwatch.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marc T. Law & Mindy S. Marks, 2009. "Effects of Occupational Licensing Laws on Minorities: Evidence from the Progressive Era," Journal of Law and Economics, University of Chicago Press, vol. 52(2), pages 351-366, 05.
- Neumark, David & Wascher, William, 2001.
"Minimum Wages and Training Revisited,"
Journal of Labor Economics,
University of Chicago Press, vol. 19(3), pages 563-95, July.
- Daniel B. Klein & Benjamin Powell & Evgeny S. Vorotnikov, 2012. "Was Occupational Licensing Good for Minorities? A Critique of Marc Law and Mindy Marks," Econ Journal Watch, Econ Journal Watch, vol. 9(3), pages 210-233, September.
- Maya N. Federman & David E. Harrington & Kathy J. Krynski, 2006. "The Impact of State Licensing Regulations on Low-Skilled Immigrants: The Case of Vietnamese Manicurists," American Economic Review, American Economic Association, vol. 96(2), pages 237-241, May.
When requesting a correction, please mention this item's handle: RePEc:ejw:journl:v:9:y:2012:i:3:p:234-255. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jason Briggeman)The email address of this maintainer does not seem to be valid anymore. Please ask Jason Briggeman to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.