Analyzing the Labor Market Outcomes of Occupational Licensing

63 Pages Posted: 23 Feb 2015

See all articles by Maury Gittleman

Maury Gittleman

Bureau of Labor Statistics

Mark Klee

Government of the United States of America - Bureau of the Census

Morris M. Kleiner

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

Multiple version iconThere are 2 versions of this paper

Date Written: February 2015

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.

Suggested Citation

Gittleman, Maury and Klee, Mark and Kleiner, Morris M., Analyzing the Labor Market Outcomes of Occupational Licensing (February 2015). NBER Working Paper No. w20961, Available at SSRN: https://ssrn.com/abstract=2568497

Maury Gittleman (Contact Author)

Bureau of Labor Statistics ( email )

2 Massachusetts Avenue, NE
Room 4130
Washington, DC 20212
United States

Mark Klee

Government of the United States of America - Bureau of the Census ( email )

4600 Silver Hill Road
Washington, DC 20233-9100
United States

Morris M. Kleiner

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

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