The Effects of Occupational Licensing Evidence from Detailed Business-Level Data

Zapletal, Marek

doi:10.2139/ssrn.2925226

Cited by 5 publications

(4 citation statements)

References 19 publications

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“…Thus restrictive licensing creates a barrier to mobility, misallocating workers across states. Thornton and Timmons (2013) add to this evidence by showing that the occupational regulation of massage therapist through state licensing appears to reduce the number of massage therapists, while Zapletal (2014) finds no effect of occupational licensing on the number of cosmetologists. Conrad and Dolan (1980) showed that reciprocity rules limit the migration of professions into restrictive states.…”

Section: Related Literature On Occupational Licensingmentioning

confidence: 98%

Labor Supply Effects of Occupational Regulation: Evidence from the Nurse Licensure Compact

DePasquale¹,

Stange²

2016

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There is concern that licensure requirements impede mobility of licensed professionals to areas of high demand. Nursing has not been immune to this criticism, especially in the context of perceived nurse shortages and large expected future demand. The Nurse Licensure Compact (NLC) was introduced to solve this problem by permitting registered nurses to practice across state lines without obtaining additional licensure. We exploit the staggered adoption of the NLC to examine whether a reduction in licensure-induced barriers alters the nurse labor market. Using data on over 1.8 million nurses and other health care workers we find no evidence that the labor supply or mobility of nurses increases following the adoption of the NLC, even among the residents of counties bordering other NLC states who are potentially most affected by the NLC. This suggests that nationalizing occupational licensing will not substantially reduce labor market frictions.

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Section: Related Literature On Occupational Licensingmentioning

confidence: 98%

Labor Supply Effects of Occupational Regulation: Evidence from the Nurse Licensure Compact

DePasquale¹,

Stange²

2016

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“…One approach is to use a flat opportunity cost such as the minimum wage. This is the method employed in Zapletal (2017) while investigating cosmetologist licensing. (The results presented below are qualitatively robust to this approach).…”

Section: Methodsmentioning

confidence: 99%

“…Recent work by Blair and Chung (2018) and Kleiner and Soltas (2019) suggests licensing reduces labor supply at the national level, aggregating across all occupations. Other works investigate these issues at the occupation level including massage therapists (Thornton and Timmons, 2013), cosmetologists (Zapletal, 2017), certified public accountants (Stephenson and Meehan, 2018) and dentists (Kleiner and Kudrle, 2000). Kleiner (2006) has a brief overview of the potential labor supply effects of licensing and reviews some previous empirical research.…”

Section: Introductionmentioning

confidence: 99%

Real estate agent dynamism and licensing entry barriers

Ingram

Yelowitz

2019

JEPP

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Purpose The purpose of this paper is to examine the labor market entry of real estate agents in the USA and the potential effect of occupational licensing on entry. Design/methodology/approach Data from the 2012 to 2017 American Community Survey are linked to local housing price fluctuations from the Federal Housing Finance Agency for 100 large metro areas. The cost of entry associated with occupational licensing for new real estate agents is carefully measured for each market and interacted with housing fluctuations to investigate the role for barriers to entry. Findings A 10 percent increase in housing prices is associated with a 4 percent increase in the number of agents. However, increased license stringency reduces the labor market response by 30 percent. The impact of licensing is stronger for women and younger workers. Originality/value This work contributes to the growing literature investigating the impact of occupational licensing on labor supply and entry in the USA, as well as potential impacts of regulation on dynamism and entrepreneurship. To the authors’ knowledge, this study is also the first to quantify the cost of occupational licensing in the real estate industry.

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“…Productivity Lowering overall service restrictions to an average feasible level of the three most deregulated EU economies would increase the productivity performance (in levels) of firms operating in both services and manufacturing industries by a maximum of 5.34 percent. Zapletal (2017) The Effects of Occupational Licensing Evidence from Detailed Business-Level Data…”

Section: Migration and Resources Allocationmentioning

confidence: 99%

Occupational entry regulations and their effects on productivity in services: Firm-level evidence

Bambalaite¹,

Nicoletti²,

Rueden³

2020

OECD Economics Department Working Papers

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RESUME Occupational entry regulations and their effects on productivity in services: firm-level evidenceThis paper assesses the link between occupational entry regulations (OER) and labour productivity. It combines international firm-level productivity data with the new composite indicator measuring the stringency of OER in terms of administrative burdens, qualifications requirements, and mobility restrictions estimated in von Rueden and Bambalaite (2020). The analysis is performed for 11 EU countries, for three professional and eight personal services. The evidence suggests that bold reforms easing OER, especially those concerning qualification requirements, could help increase the contribution of personal and professional services to aggregate productivity growth via two channels: the improvement in firm-level productivity growth, where the average firms in regulated sectors could gain around 1.5 percentage points on impact; and a higher contribution of labour reallocation to firms' employment growth, which could increase by up to 10 percent for the most productive firms. Given the scope for reform highlighted by crosscountry differences in regulatory approaches and the potential positive effects on productivity of such reforms, our results are supportive of the need to (i) review regulations in the light of changing public interests, technological developments and international experience, (ii) shift the focus of regulations from inputs to outputs wherever possible, and (iii) check the implications of regulations for competition and explore new ways to deliver better information to consumers.JEL classification codes: J44 ;O43; L5; O57; L16; C21. Les effets de la certification professionnelle sur la productivité des services: Résultats au niveau d'entrepriseCette étude évalue les liens potentiels entre les critères de certification professionnelle et la productivité du travail. L'étude s'appuie à la fois sur des données internationales de productivité au niveau d'entreprise et sur un nouvel indicateur (proposé par von Rueden et Bambalaite, 2020) comparant à travers plusieurs pays la sévérité des critères administratifs, de qualification et de mobilité. L'analyse concerne onze pays européens, trois services professionnels et huit services à la personne. Nos résultats suggèrent que réformer ces critères, spécialement le niveau de qualifications requis, pour faciliter l'accès au marché des prestateurs de ces services pourrait renforcer leur contribution à la croissance de la productivité agrégée de deux façons: cela pourrait accélérer la vitesse à laquelle les entreprises s'approchent des meilleures pratiques internationales, un canal interne aux entreprises à travers lequel leur croissance augmenterait en moyenne d'environ 1,5 points en pourcentage selon nos estimations; et cela pourrait aussi conduire à une plus forte croissance de l'emploi dans les entreprises les plus productives, un canal de réallocation à travers lequel ces entreprises pourraient augmenter leur avantage d'embauche vis à vis des entreprises m...

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The Effects of Occupational Licensing Evidence from Detailed Business-Level Data

Cited by 5 publications

References 19 publications

Labor Supply Effects of Occupational Regulation: Evidence from the Nurse Licensure Compact

Labor Supply Effects of Occupational Regulation: Evidence from the Nurse Licensure Compact

Real estate agent dynamism and licensing entry barriers

Occupational entry regulations and their effects on productivity in services: Firm-level evidence

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