NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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How Much of Barrier to Entry is Occupational Licensing?

Peter Q. Blair, Bobby W. Chung

NBER Working Paper No. 25262
Issued in November 2018, Revised in December 2018
NBER Program(s):Labor Studies

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

 
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