What are the long run effects of nurse occupational licensure?
Mindy Marks and
Marc Law
No 201439, Working Papers from University of California at Riverside, Department of Economics
Abstract:
Most theories of occupational regulation posit that the effects of occupational licensure regulations—laws that require members of an occupation to possess a license in order to practice—increase with time. In this paper, we take advantage of a quasi-experiment afforded by the fact that different US states adopted mandatory licensing of registered and practical nurses at different times to estimate the effects of licensing on wages and participation, allowing for licensing laws that have been in place longer to have larger effects. We investigate these impacts on the profession as a whole, and on minority workers in particular, using individual-level data taken from four waves of the US decennial censuses. While we find some evidence that wages of nurses increased with the duration of licensing, there is no systematic evidence that participation declined. Additionally, for registered nurses, we find that minority wages rose faster than non-minority wages, and that the participation of minority workers increased with time relative to non-minorities following licensure. Taken as a whole, these findings are more consistent with the public interest theory than the capture theory.
Date: 2014-09
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https://economics.ucr.edu/repec/ucr/wpaper/201439.pdf First version, 2014 (application/pdf)
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Persistent link: https://EconPapers.repec.org/RePEc:ucr:wpaper:201439
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