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Analyzing Occupational Licensing Across Nations

Author

Listed:
  • Jonathan S. Hartley
  • Morris M. Kleiner

Abstract

Relatively little is known about occupational licensing across nations. We assemble harmonized estimates of licensing prevalence for 44 countries using nationally representative surveys, including new surveys for previously unstudied countries. Licensing ranges from roughly 14 percent of workers in Denmark to more than 40 percent in India and South Africa. Licensed workers earn 6 to 19 percent higher wages than comparable unlicensed workers across specifications. Licensing prevalence is negatively associated with GDP per capita and governance quality, and positively associated with informal employment, suggesting occupational licensing is intertwined with labor market efficiency, formalization, and long-run economic development.

Suggested Citation

  • Jonathan S. Hartley & Morris M. Kleiner, 2026. "Analyzing Occupational Licensing Across Nations," NBER Working Papers 35424, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:35424
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • J8 - Labor and Demographic Economics - - Labor Standards
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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