The costs and potential benefits of occupational licensing: A case of real estate license reform

Bobby W. Chung

Labour Economics, 2022, vol. 76, issue C

Abstract: Occupational licensing potentially benefits consumers by screening and training workers but at the cost of lower supply. To evaluate this trade-off, I leverage a quasi-experimental setting in which Illinois required compliance training for new and existing real estate agents. Analyzing multiple data sources (licensee registration, aggregate housing statistics, and a national household survey), I find that the reform caused a one-time spike in agent outflows and a decrease in home sales, with female and novice agents being less likely to stay. For the policy intention, I do not find strong evidence that the reform reduced new misconduct incidents.

Keywords: Occupational licensing; Employment; Quality; Real estate license; Labor supply (search for similar items in EconPapers)
JEL-codes: J44 K25 K31 L85 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:76:y:2022:i:c:s092753712200063x

DOI: 10.1016/j.labeco.2022.102172

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