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The effect of occupational licensing deregulation on migrants in the German skilled crafts sector

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  • Petrik Runst

    (University of Göttingen)

Abstract

Occupational licensing on the national level reduces labor market prospects of individuals with a low likelihood of fulfilling the licensing requirements. Such regulation has the potential to adversely affect the labor market integration of foreign-born citizens and can be an obstacle to the free movement of labor toward its most productive uses. Before the backdrop of increased levels of migration into Germany, and the discussion about harmonizing labor standards in Europe, this paper empirically examines the effects of the deregulation of occupational licensing in the German crafts sector on the proportion of migrants working in this sector. The results suggest that the deregulation has increased the proportion of migrants among self-employed as well as employed craftsmen in the fully deregulated trades.

Suggested Citation

  • Petrik Runst, 2018. "The effect of occupational licensing deregulation on migrants in the German skilled crafts sector," European Journal of Law and Economics, Springer, vol. 45(3), pages 555-589, June.
    • Handle: RePEc:kap:ejlwec:v:45:y:2018:i:3:d:10.1007_s10657-018-9583-x
    DOI: 10.1007/s10657-018-9583-x
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    Cited by:

    1. Runst Petrik & Thomä Jörg, 2020. "Does Occupational Deregulation Affect In-Company Vocational Training? – Evidence from the 2004 Reform of the German Trade and Crafts Code," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(1), pages 51-88, January.
    2. Haverkamp, Katarzyna, 2019. "Soloselbstständigkeit im Handwerk: Ergebnisse des Mikrozensus 2014," Göttinger Beiträge zur Handwerksforschung 29, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    3. Bizer, Kilian & Haverkamp, Katarzyna & Proeger, Till, 2019. "Stellungnahme zur Wiedereinführung der Meisterpflicht im Handwerk," Göttinger Beiträge zur Handwerksforschung 31, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).

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    More about this item

    Keywords

    Occupational licensing; Migrants; Germany; Common market; Deregulation;
    All these keywords.

    JEL classification:

    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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