Download this Paper Open PDF in Browser

Does Regulation Affect Economic Outcomes? The Case of Dentistry

48 Pages Posted: 26 Jun 2000  

Morris M. Kleiner

University of Minnesota - Twin Cities - Hubert H. Humphrey Institute of Public Affairs; National Bureau of Economic Research (NBER)

Robert T. Kudrle

University of Minnesota, Twin Cities

Multiple version iconThere are 3 versions of this paper

Date Written: December 30, 1999

Abstract

This study examines the role of variations in occupational licensing policies in improving the quality of services provided to consumers and the effect of restrictive regulations on the prices of certain services and on the earnings of practitioners. Theory suggests that more restrictive licensing may raise prices, but that it may also raise demand by reducing uncertainty about the quality of the services. This paper uses unique data on the dental health of incoming Air Force personnel to analyze empirically the effects of varying licensing stringency among the states. We find that tougher licensing does not improve outcomes, but it does raise prices and earnings of practitioners. Our results cast doubt on the principal public interest argument in favor of more stringent state licensing practices.

JEL Classification: J3, J4, K2, L5

Suggested Citation

Kleiner, Morris M. and Kudrle, Robert T., Does Regulation Affect Economic Outcomes? The Case of Dentistry (December 30, 1999). Available at SSRN: https://ssrn.com/abstract=202391 or http://dx.doi.org/10.2139/ssrn.202391

Morris M. Kleiner (Contact Author)

University of Minnesota - Twin Cities - Hubert H. Humphrey Institute of Public Affairs ( email )

and the Industrial Relations Center
Minneapolis, MN 55455
United States
612-625-2089 (Phone)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Robert T. Kudrle

University of Minnesota, Twin Cities ( email )

420 Delaware St. SE
Minneapolis, MN 55455
United States

Paper statistics

Downloads
239
Rank
91,178
Abstract Views
2,026