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Title:The prevalence and effects of occupational licensing PDF Logo
Authors:Kleiner, Morris M.
Krueger, Alan B.
Issue Date:2008
Series/Report no.:IZA Discussion Papers 3675
Abstract:This study provides the first nation-wide analysis of the labor market implications of occupational licensing for the U.S. labor market, using data from a specially designed Gallup survey. We find that in 2006, 29 percent of the workforce was required to hold an occupational license from a government agency, which is a higher percentage than that found in studies that rely on state-level occupational licensing data. Workers who have higher levels of education are more likely to work in jobs that require a license. Union workers and government employees are more likely to have a license requirement than are nonunion or private sector employees. Our multivariate estimates suggest that licensing has about the same quantitative impact on wages as do unions - that is about 15 percent, but unlike unions which reduce variance in wages, licensing does not significantly reduce wage dispersion for individuals in licensed jobs.
Subjects:Occupational licensing
regulation
wages
JEL:J8
Persistent Identifier of the first edition:urn:nbn:de:101:1-2008092334
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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