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Estimating the returns to occupational licensing: evidence from regression discontinuities at the bar exam

Author

Listed:
  • Omar Bamieh

    (University of Vienna)

  • Andrea Cintolesi

    (Bank of Italy)

  • Mario Pagliero

    (University of Turin and Collegio Carlo Alberto)

Abstract

We estimate the monetary returns to occupational licensing of Italian lawyers. To enter the legal profession in Italy, lawyers must pass a written and an oral exam featuring sharp discontinuities in the passing grade. Focusing on a subgroup of Italian law graduates taking the bar exam in Turin (a city in Northwest Italy), we exploit the sharp discontinuity generated by the bar exam to compare individuals who marginally pass and fail the bar exam and compare their earnings up to 19 years since their first attempt at the bar exam. We find that individuals with a licence to practice law earn, on average, euro 21,000 gross more per year than individuals without a license. These returns are positive in each year of the analysis, increase up to the tenth year and then decrease.

Suggested Citation

  • Omar Bamieh & Andrea Cintolesi & Mario Pagliero, 2024. "Estimating the returns to occupational licensing: evidence from regression discontinuities at the bar exam," Temi di discussione (Economic working papers) 1440, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_1440_24
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    File URL: https://www.bancaditalia.it/pubblicazioni/temi-discussione/2024/2024-1440/en_tema_1440.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    labour market regulation; occupational licensing; earnings; legal market; bar exam;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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