Licensing growth and its effect on employment concentration

Thomas Snyder (), Elsa Mattson () and Alex Kanode ()
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Thomas Snyder: University of Central Arkansas
Elsa Mattson: University of Central Arkansas
Alex Kanode: Clemson University

Economics Bulletin, 2022, vol. 42, issue 2, 947 - 958

Abstract: This study examines the relationship between the growth in state occupational licensing regulations and the change in the concentration of practitioners over time in the U.S. We exploit cross-state variances in occupational licensing data from the available datasets in 1993 and 2017. Our focus is on service-providing, low-to-moderate-income occupations. The general trend has been for states to license more occupations and to increase the burden of these licensed occupations over time. The states that had a relatively low level of licensing burdens in 1993 generally had the most growth in licensing. We find that counties with more concentrated service-providing industries are in states with higher licensing burdens, but an initial higher licensing burden is associated with lower levels of sector concentration over time.

Keywords: Occupational Licensing; Employment Quotient; State Regulation (search for similar items in EconPapers)
JEL-codes: J4 J5 (search for similar items in EconPapers)
Date: 2022-06-30
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