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From Certification To Licensure: Evidence From Registered And Practical Nurses In The United States, 1950-1970

Author

Listed:
  • Marc T. Law
  • Mindy S. Marks

Abstract

In this paper we use individual-level census data on registered and practical nurses in the United States from 1950-70 to determine the effect that the switch from certification to licensure had on wages and participation in the registered and practical nurse professions. We examine these occupations to take advantage of a quasi-experiment afforded by the fact that, by the beginning of our sample, all states already had certification in place and some states already required a license. During the subsequent decade several states switched from certification to a mandatory licensing regime while others did not. Accordingly, we infer the effect of licensure in a differences-in-differences framework that uses states that did not change their regulatory regime as a control. Interestingly, we find that the shift from certification to mandatory licensing had little to no effect on the wages or the participation rate of practical and registered nurses.

Suggested Citation

  • Marc T. Law & Mindy S. Marks, 2013. "From Certification To Licensure: Evidence From Registered And Practical Nurses In The United States, 1950-1970," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(2), pages 177-198, August.
    • Handle: RePEc:liu:liucej:v:10:y:2013:i:2:p:177-198
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    References listed on IDEAS

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    1. Leland, Hayne E, 1979. "Quacks, Lemons, and Licensing: A Theory of Minimum Quality Standards," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1328-1346, December.
    2. Morris M. Kleiner, 2006. "Licensing Occupations: Ensuring Quality or Restricting Competition?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number lo.
    3. Law, Marc T. & Kim, Sukkoo, 2005. "Specialization and Regulation: The Rise of Professionals and the Emergence of Occupational Licensing Regulation," The Journal of Economic History, Cambridge University Press, vol. 65(3), pages 723-756, September.
    4. Mario Pagliero & Edward Timmons, 2013. "Occupational Regulation in the European Legal Market," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(2), pages 243-265, August.
    5. William White, 1987. "The introduction of professional regulation and labor market conditions," Policy Sciences, Springer;Society of Policy Sciences, vol. 20(1), pages 27-51, April.
    6. David E. Kalist & Stephen J. Spurr, 2004. "The Effect of State Laws on the Supply of Advanced Practice Nurses," International Journal of Health Economics and Management, Springer, vol. 4(4), pages 271-281, December.
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    Citations

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    Cited by:

    1. Morikawa, Masayuki, 2018. "Occupational licenses and labor market outcomes in Japan," Japan and the World Economy, Elsevier, vol. 48(C), pages 45-56.
    2. Suyoun Han & Morris M. Kleiner, 2016. "Analyzing the Influence of Occupational Licensing Duration and Grandfathering on Labor Market Outcomes," NBER Working Papers 22810, National Bureau of Economic Research, Inc.
    3. Marc T. Law & Mindy S. Marks, 2017. "The Labor-Market Effects of Occupational Licensing Laws in Nursing," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(4), pages 640-661, October.
    4. Masayuki MORIKAWA, 2017. "Occupational Licenses and Labor Market Outcomes," Discussion papers 17078, Research Institute of Economy, Trade and Industry (RIETI).
    5. Suyoun Han & Morris M. Kleiner, 2017. "Analyzing the Influence of Occupational Licensing Duration and Grandfathering on Labor Market Outcomes," Staff Report 556, Federal Reserve Bank of Minneapolis.
    6. Mario Pagliero & Edward Timmons, 2013. "Occupational Regulation in the European Legal Market," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(2), pages 243-265, August.
    7. repec:ejw:journl:v:9:y:2012:i:3:p:210-233 is not listed on IDEAS

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    Keywords

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    JEL classification:

    • K2 - Law and Economics - - Regulation and Business Law
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

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