NATIONAL BUREAU OF ECONOMIC RESEARCH
Department of Applied Economics
University of Minnesota
St. Paul Minnesota
NBER Working Papers and Publications
|November 2016||Analyzing the Influence of Occupational Licensing Duration on Labor Market Outcomes|
with Morris M. Kleiner: w22810
We analyze the labor market influence of the duration of occupational licensing statutes for 12 major universally licensed occupations over a 73 year period. These occupations comprise the vast majority of workers in these regulated occupations in the United States. Time from the start of state occupational licensing statutes (i.e., licensing duration) may matter in influencing labor market outcomes. Adding to or raising the entry barriers is likely easier once an occupation is established and has gained influence in a political jurisdiction. States often enact grandfather clauses and ratchet up requirements that protect existing workers and increase entry costs to new entrants. We provide among the first estimates of potential economic rents to grandfathering. We find that duration years ...