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Occupational Licensing and Occupational Mobility

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  • Osborne Jackson

Abstract

This paper estimates the impact of occupational licensing at the extensive margin (existence) and intensive margin (qualifications) on the occupational mobility of US workers. Using 2015–2022 Current Population Survey data on worker occupational choices matched to licensing-policy data, I show that the existence of licensing regulation significantly reduces the probability that a worker enters an occupation. This reduced mobility is largely due to licensing fees and minimum thresholds for age and education. This finding may help explain the weak relationship between licensure and product market quality, as binding licensing qualifications likely have mixed links to worker skills.

Suggested Citation

  • Osborne Jackson, 2023. "Occupational Licensing and Occupational Mobility," Working Papers 23-18, Federal Reserve Bank of Boston.
    • Handle: RePEc:fip:fedbwp:97499
    DOI: 10.29412/res.wp.2023.18
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    References listed on IDEAS

    as
    1. Janna E. Johnson & Morris M. Kleiner, 2020. "Is Occupational Licensing a Barrier to Interstate Migration?," American Economic Journal: Economic Policy, American Economic Association, vol. 12(3), pages 347-373, August.
    2. Morris M. Kleiner & Alan B. Krueger, 2013. "Analyzing the Extent and Influence of Occupational Licensing on the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 173-202.
    3. Julia A. Rivera Drew & Sarah Flood & John Robert Warren, 2014. "Making full use of the longitudinal design of the Current Population Survey: Methods for linking records across 16 months\m{1}," Journal of Economic and Social Measurement, IOS Press, issue 3, pages 121-144.
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    More about this item

    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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