Becker Friedman Institute

Research Repository

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How Much of Barrier to Entry is Occupational Licensing?

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.

Authors: 
Peter Blair, Clemson University
Bobby Chung, Clemson University
Publication Date: 
December, 2018
Publication Status: 
Document Number: 
2018-092
File Description: 
First version, December 12, 2018