How Much of Barrier to Entry is Occupational Licensing?

Produced by: 
National Bureau of Economic Research
Available from: 
November 2018
Paper author(s): 
Peter Q. Blair
Bobby W. Chung
Topic: 
Labor
Year: 
2018

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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Research section: 
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