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How Much of Barrier to Entry is Occupational Licensing?

Author

Listed:
  • Peter Blair

    (Clemson University)

  • Bobby Chung

    (Clemson University)

Abstract

We exploit state variation in licensing laws to study the effect of licensing on occupational choice using a boundary discontinuity design. We find that licensing reduces equilibrium labor supply by an average of 17%-27%. The negative labor supply effects of licensing appear to be strongest for white workers and comparatively weaker for black workers.

Suggested Citation

  • Peter Blair & Bobby Chung, 2018. "How Much of Barrier to Entry is Occupational Licensing?," Working Papers 2018-092, Human Capital and Economic Opportunity Working Group.
  • Handle: RePEc:hka:wpaper:2018-092
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    File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Blair_Chung_2018_barrier-entry-occupational-licensing.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Massimiliano Tani, 2021. "Occupational Licensing and the Skills Mismatch of Highly Educated Migrants," British Journal of Industrial Relations, London School of Economics, vol. 59(3), pages 730-756, September.
    2. Noah J. Trudeau, 2021. "Occupational Licensing and Intra-MSA Effects: Massage Therapists in the US," Working Papers 21-03, Department of Economics, West Virginia University.
    3. Morris M. Kleiner & Edward J. Timmons, 2020. "Occupational Licensing: Improving Access to Regulatory Information," Journal of Labor Research, Springer, vol. 41(4), pages 333-337, December.
    4. Yelowitz, Aaron & Ingram, Samuel J., 2021. "How Does Occupational Licensing Affect Entry into the Medical Field? An Examination of EMTs," IZA Discussion Papers 14071, Institute of Labor Economics (IZA).
    5. Morris M. Kleiner & Evan J. Soltas, 2019. "A Welfare Analysis of Occupational Licensing in U.S. States," NBER Working Papers 26383, National Bureau of Economic Research, Inc.
    6. Xia, Xing, 2021. "Barrier to Entry or Signal of Quality? The Effects of Occupational Licensing on Minority Dental Assistants," Labour Economics, Elsevier, vol. 71(C).
    7. Morris M. Kleiner & Evan J. Soltas, 2019. "A Welfare Analysis of Occupational Licensing in U.S. States," Staff Report 590, Federal Reserve Bank of Minneapolis.

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    More about this item

    Keywords

    occupational licensing; Labor Supply; race; gender;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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