How Much of Barrier to Entry is Occupational Licensing?
NBER Working Paper No. 25262
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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Document Object Identifier (DOI): 10.3386/w25262