The Prevalence and Effects of Occupational Licensing

Morris M. Kleiner () and Alan Krueger
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Morris M. Kleiner: University of Minnesota

No 3675, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: occupational licensing; regulation; wages (search for similar items in EconPapers)
JEL-codes: J8 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2008-08
New Economics Papers: this item is included in nep-bec
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Citations: View citations in EconPapers (10)

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Related works:
Journal Article: The Prevalence and Effects of Occupational Licensing (2010)
Working Paper: The Prevalence and Effects of Occupational Licensing (2008)
Working Paper: The Prevalence and Effects of Occupational Licensing (2008)
Working Paper: The Prevalence and Effects of Occupational Licensing (2008)
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