Cosmetology Gets a Trim: The Impact of Reducing Licensing Hours on Colleges and Students

In the United States, licenses are required for entry into many different occupations. Requirements vary by state and occupation, but many licenses require a minimum number of training or instructional hours. We consider the impact of these hours requirements on students and postsecondary institutions, with a particular focus on cosmetology (also known as hairstyling or beauty). Cosmetology licensing requires extensive training hours (between 500 and 2,100 hours) in every state and typically exceeds the time required for similar licenses. We implement a difference-in-difference design based on state-level changes in required licensing hours for cosmetologists between 2011 and 2019. We ask how and whether changes to hours requirements influence student outcomes and institutional behavior. We find that lowering required hours is likely beneficial for students, as it raises completion, lowers tuition, and expands enrollment among some groups of students. Larger institutions appear to reduce their tuition by less than smaller institutions. We find no detectable effects on the earnings of cosmetologists.