NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Peter Q. Blair

Department of Economics
Clemson University
220F Sirrine Hall
Clemson, SC 29634
Tel: 864/656-1154

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
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NBER Program Affiliations: ED
NBER Affiliation: Faculty Research Fellow

NBER Working Papers and Publications

July 2018Job Market Signaling through Occupational Licensing
with Bobby W. Chung: w24791
A large literature demonstrates that occupational licensing is a labor market friction that distorts labor supply allocation and prices. We show that an occupational license serves as a job market signal, similar to education. In the presence of occupational licensing, we find evidence that firms rely less on observable characteristics such as race and gender in determining employee wages. As a result, licensed minorities and women experience smaller wage gaps than their unlicensed peers.
 
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