@techreport{NBERw14308, title = "The Prevalence and Effects of Occupational Licensing", author = "Morris M. Kleiner and Alan B. Krueger", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "14308", year = "2008", month = "September", URL = "http://www.nber.org/papers/w14308", abstract = {This study provides the first nation-wide analysis of the labor market implications of occupational licensing for the U.S. labor market, using data from a specially designed Gallup survey. We find that in 2006, 29 percent of the workforce was required to hold an occupational license from a government agency, which is a higher percentage than that found in studies that rely on state-level occupational licensing data. Workers who have higher levels of education are more likely to work in jobs that require a license. Union workers and government employees are more likely to have a license requirement than are nonunion or private sector employees. Our multivariate estimates suggest that licensing has about the same quantitative impact on wages as do unions -- that is about 15 percent, but unlike unions which reduce variance in wages, licensing does not significantly reduce wage dispersion for individuals in licensed jobs.}, }