 Analyzing the Influence of Occupational Licensing Duration and Grandfathering on Wage DeterminationSuyoun Han and Morris M. Kleiner Industrial Relations: A Journal of Economy and Society, 2021, vol. 60, issue 2, 147-187 Abstract: The length of time from the implementation of an occupational licensing statute (i.e., licensing duration) may matter in influencing labor‐market outcomes as entry requirements evolve. In addition, states enact grandfather clauses that allow existing workers to continue employment following these regulations, while ratcheting up requirements to increase entry costs for new entrants. We analyze the labor‐market influence of the duration of occupational licensing statutes for fifteen state universally licensed occupations over a 75‐year period. We find a positive nonlinear wage effect for licensing duration. Further, we find that occupational licensing raises the wages of grandfathered workers by almost 5 percent. The licensed occupations, however, exhibit heterogeneity in outcomes. Duration of occupational licensing influences wage determination when measured over longer time periods. Date: 2021 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:indres:v:60:y:2021:i:2:p:147-187 Ordering information: This journal article can be ordered from Access Statistics for this article Industrial Relations: A Journal of Economy and Society is currently edited by Christopher (Kitt) Carpenter, Steven Raphael and stevenraphael@berkeley.edu More articles in Industrial Relations: A Journal of Economy and Society from Wiley Blackwell |
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