Analyzing the Labor Market Outcomes of Occupational Licensing

Maury Gittleman (), Mark Klee and Morris M. Kleiner

No 504, Staff Report from Federal Reserve Bank of Minneapolis

Abstract: Recent assessments of occupational licensing have shown varying effects of the institution on labor market outcomes. This study revisits the relationship between occupational licensing and labor market outcomes by analyzing a new topical module to the Survey of Income and Program Participation (SIPP). Relative to previously available data, the topical module offers more detailed information on occupational licensing from government, with a larger sample size and access to a richer set of person-level characteristics. We exploit this larger and more detailed data set to examine the labor market outcomes of occupational licensing and how workers obtain these licenses from government. More specifically, we analyze whether there is evidence of a licensing wage premium, and how this premium varies with aspects of the regulatory regime such as the requirements to obtain a license or certification and the level of government oversight. After controlling for observable heterogeneity, including occupational status, we find that those with a license earn higher pay, are more likely to be employed, and have a higher probability of retirement and pension plan offers.

Keywords: Occupational licensing; Wages; Non-wage benefits (search for similar items in EconPapers)
JEL-codes: J30 J44 L50 (search for similar items in EconPapers)
Pages: 62 pages
Date: 2014-10-22
New Economics Papers: this item is included in nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Analyzing the Labor Market Outcomes of Occupational Licensing (2018)
Working Paper: Analyzing the Labor Market Outcomes of Occupational Licensing (2015)
Working Paper: Analyzing the Labor Market Outcomes of Occupational Licensing (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmsr:504

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