Analyzing the Labor Market Outcomes of Occupational Licensing

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

No 20961, NBER Working Papers from National Bureau of Economic Research, Inc

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 larger sample sizes and access to richer sets 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.

JEL-codes: J30 J38 J4 J44 J48 K23 L5 L51 L88 (search for similar items in EconPapers)
Date: 2015-02
New Economics Papers: this item is included in nep-lma
Note: IO LE LS
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Citations: View citations in EconPapers (13)

Published as Maury Gittleman & Mark A. Klee & Morris M. Kleiner, 2018. "Analyzing the Labor Market Outcomes of Occupational Licensing," Industrial Relations: A Journal of Economy and Society, vol 57(1), pages 57-100.

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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 (2014)
Working Paper: Analyzing the Labor Market Outcomes of Occupational Licensing (2014)
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