The Prevalence and Effects of Occupational Licensing

Alan Krueger and Morris Kleiner
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Morris Kleiner: University of Minnesota

No 1092, Working Papers from Princeton University, Department of Economics, Center for Economic Policy Studies.

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: United; States (search for similar items in EconPapers)
JEL-codes: J31 J44 J51 (search for similar items in EconPapers)
Date: 2008-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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https://gceps.princeton.edu/wp-content/uploads/2017/01/174krueger.pdf

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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Persistent link: https://EconPapers.repec.org/RePEc:pri:cepsud:174

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