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

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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.

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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