How Much of Barrier to Entry is Occupational Licensing?

36 Pages Posted: 19 Nov 2018

See all articles by Peter Q.. Blair

Peter Q.. Blair

Harvard University - Harvard Graduate School of Education

Wing Yin Chung

Clemson University

Date Written: November 2018

Abstract

We exploit state variation in licensing laws to study the effect of licensing on occupational choice using a boundary discontinuity design. We find that licensing reduces equilibrium labor supply by an average of 17%-27%. The negative labor supply effects of licensing appear to be strongest for white workers and comparatively weaker for black workers.

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Suggested Citation

Blair, Peter Q.. and Chung, Wing Yin, How Much of Barrier to Entry is Occupational Licensing? (November 2018). NBER Working Paper No. w25262. Available at SSRN: https://ssrn.com/abstract=3286882

Peter Q.. Blair (Contact Author)

Harvard University - Harvard Graduate School of Education ( email )

456 Gutman Library
6 appian way
cambridge, MA 02138
United States

Wing Yin Chung

Clemson University

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