Analyzing The Influence Of Occupational Licensing Duration On Labor Market Outcomes
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Analyzing The Influence Of Occupational Licensing Duration On Labor Market Outcomes
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Author : Suyoun Han
language : en
Publisher:
Release Date : 2016
Analyzing The Influence Of Occupational Licensing Duration On Labor Market Outcomes written by Suyoun Han and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with Labor market categories.
Abstract: We analyze the labor market influence of the duration of occupational licensing statutes for 12 major universally licensed occupations over a 73 year period. These occupations comprise the vast majority of workers in these regulated occupations in the United States. Time from the start of state occupational licensing statutes (i.e., licensing duration) may matter in influencing labor market outcomes. Adding to or raising the entry barriers is likely easier once an occupation is established and has gained influence in a political jurisdiction. States often enact grandfather clauses and ratchet up requirements that protect existing workers and increase entry costs to new entrants. We provide among the first estimates of potential economic rents to grandfathering. We find that duration years of occupational licensing are positively associated with wages for continuing and grandfathered workers. The estimates show a positive relationship of duration with hours worked, but we find moderately negative results for participation in the labor market. The universally licensed occupations, however, exhibit heterogeneity in outcomes. Consequently, unlike some other labor market public policies, such as minimum wages or direct unemployment insurance benefits, occupational licensing would likely influence labor market outcomes when measured over a longer period of time
Analyzing The Influence Of Occupational Licensing Duration And Grandfathering On Labor Market Outcomes
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Author : Suyoun Han
language : en
Publisher:
Release Date : 2016
Analyzing The Influence Of Occupational Licensing Duration And Grandfathering On Labor Market Outcomes written by Suyoun Han and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with categories.
The length of time from the implementation of an occupational licensing statute (i.e., licensing duration) may matter in influencing labor market outcomes. Adding to or raising the entry barriers are likely easier once an occupation is established and has gained influence in a political jurisdiction. States often enact grandfather clauses and ratchet up requirements that protect existing workers and increase entry costs to new entrants. We analyze the labor market influence of the duration of occupational licensing statutes for 13 major universally licensed occupations over a 75-year period. These occupations comprise the vast majority of workers in these regulated occupations in the United States. We provide among the first estimates of potential economic rents to grandfathering. We find that duration years of occupational licensure are positively associated with wages for continuing and grandfathered workers. The estimates show a positive relationship of duration with hours worked, but we find moderately negative results for participation in the labor market. The universally licensed occupations, however, exhibit heterogeneity in outcomes. Consequently, unlike some other labor market public policies, such as minimum wages or direct unemployment insurance benefits, occupational licensing would likely influence labor market outcomes when measured over a longer period of time.
Analyzing The Labor Market Outcomes Of Occupational Licensing
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Author : Maury B. Gittleman
language : en
Publisher:
Release Date : 2015
Analyzing The Labor Market Outcomes Of Occupational Licensing written by Maury B. Gittleman and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015 with Labor market categories.
Recent assessments of occupational licensing have shown varying effects of the institution on labor market outcomes. This study revisits the relationship between occupational licensing and labor market outcomes by analyzing a new topical module to the Survey of Income and Program Participation (SIPP). Relative to previously available data, the topical module offers more detailed information on occupational licensing from government, with larger sample sizes and access to richer sets of person-level characteristics. We exploit this larger and more detailed data set to examine the labor market outcomes of occupational licensing and how workers obtain these licenses from government. More specifically, we analyze whether there is evidence of a licensing wage premium, and how this premium varies with aspects of the regulatory regime such as the requirements to obtain a license or certification and the level of government oversight. After controlling for observable heterogeneity, including occupational status, we find that those with a license earn higher pay, are more likely to be employed, and have a higher probability of retirement and pension plan offers.
Analyzing The Extent And Influence Of Occupational Licensing On The Labor Market
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Author : Morris M. Kleiner
language : en
Publisher:
Release Date : 2009
Analyzing The Extent And Influence Of Occupational Licensing On The Labor Market written by Morris M. Kleiner and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2009 with Licenses categories.
This study examines the extent and influence of occupational licensing in the U.S. using a specially designed national labor force survey. Specifically, we provide new ways of measuring occupational licensing and consider what types of regulatory requirements and what level of government oversight contribute to wage gains and variability. Estimates from the survey indicated that 35 percent of employees were either licensed or certified by the government, and that 29 percent were fully licensed. Another 3 percent stated that all who worked in their job would eventually be required to be certified or licensed, bringing the total that are or eventually must be licensed or certified by government to 38 percent. We find that licensing is associated with about 14 percent higher wages, but the effect of governmental certification on pay is much smaller. Licensing by multiple political jurisdictions is associated with the highest wage gains relative to only local licensing. Specific requirements by the government for a worker to enter an occupation, such as education level and long internships, are positively associated with wages. We find little association between licensing and the variance of wages, in contrast to unions. Overall, our results show that occupational licensing is an important labor market phenomenon that can be measured in labor force surveys.
Analyzing The Labor Market Outcomes Of Occupational Licensing
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Author : Maury Gittleman
language : en
Publisher:
Release Date : 2017
Analyzing The Labor Market Outcomes Of Occupational Licensing written by Maury Gittleman and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2017 with categories.
Recent assessments of occupational licensing have shown varying effects of the institution on labor-market outcomes. This study revisits the relationship between occupational licensing and labor-market outcomes by analyzing a new topical module to the Survey of Income and Program Participation. Relative to previously available data, the topical module offers more detailed information on occupational licensing attainment, with larger sample sizes and access to richer sets of person-level characteristics. We find that those with a license earn higher pay, are more likely to be employed, and have a higher probability of employer-sponsored health insurance offers.
The Labor Market Effects Of Occupational Licensing In The Public Sector
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Author : Morris M. Kleiner
language : en
Publisher:
Release Date : 2023
The Labor Market Effects Of Occupational Licensing In The Public Sector written by Morris M. Kleiner and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023 with categories.
In the U.S., occupational licensing is more prevalent in the public sector than in the private sector, but the influence of occupational regulation for public sector workers has not been analyzed in detail. Our study initially examines the probability of a licensed worker selecting into the public sector. Using the probability as a control for these individuals' risk aversion, we next examine how licensing impacts key labor market outcomes, such as wages, hours worked, and employment in the public sector. Our results show that having an occupational license increases the likelihood of working in the public sector. After adjusting for the selection bias of choosing into the public sector, we find that being in a licensed occupation in the public sector raises wages by about 6% and increases hours worked, but reduces employment, even when controlling for other labor market institutions that also are more prevalent in the public sector such as unionization. Overall, our estimates suggest that the social welfare effects of licensing in the public sector are like those for the whole sample, and they generally result in a welfare loss in the public sector.
Occupational Licensing And Labour Market Fluidity
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Author : Morris M. Kleiner
language : en
Publisher:
Release Date : 2020
Occupational Licensing And Labour Market Fluidity written by Morris M. Kleiner and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020 with categories.
We show that occupational licensing has significant negative effects on labor market fluidity defined as cross-occupation mobility. Using a balanced panel of workers constructed from the CPS and SIPP data, we analyze the link between occupational licensing and labor market outcomes. We find that workers with a government-issued occupational license experience churn rates significantly lower than those of non-licensed workers. Specifically, licensed workers are 24% less likely to switch occupations and 3 % less likely to become unemployed in the following year. Moreover, occupational licensing represents barriers to entry for both non-employed workers and employed ones. The effect is more prominent for employed workers relative to those entering from non-employment, because the opportunity cost of acquiring a license is much higher for employed individuals. Lastly, we find that average wage growth is higher for licensed workers than non-licensed workers, whether they stay in the same occupation in the next year or switch occupations. We find significant heterogeneity in the licensing effect across different occupation groups. These results hold across various data sources, time spans, and indicators of being licensed. Overall, licensing could account for almost 8% of the total decline in monthly occupational mobility over the past two decades.
Occupational Licensing And Labor Market Fluidity
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Author : Morris M. Kleiner
language : en
Publisher:
Release Date : 2020
Occupational Licensing And Labor Market Fluidity written by Morris M. Kleiner and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020 with categories.
We show that occupational licensing has significant negative effects on labor market fluidity defined as cross-occupation mobility. Using a balanced panel of workers constructed from the CPS and SIPP data, we analyze the link between occupational licensing and labor market outcomes. We find that workers with a government-issued occupational license experience churn rates significantly lower than those of non-licensed workers. Specifically, licensed workers are 24% less likely to switch occupations and 3% less likely to become unemployed in the following year. Moreover, occupational licensing represents barriers to entry for both non-employed workers and employed ones. The effect is more prominent for employed workers relative to those entering from nonemployment, because the opportunity cost of acquiring a license is much higher for employed individuals. Lastly, we find that average wage growth is higher for licensed workers than non-licensed workers, whether they stay in the same occupation in the next year or switch occupations. We find significant heterogeneity in the licensing effect across different occupation groups. These results hold across various data sources, time spans, and indicators of being licensed. Overall, licensing could account for almost 8% of the total decline in monthly occupational mobility over the past two decades.
Licensing Occupations
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Author : Morris M. Kleiner
language : en
Publisher: W.E. Upjohn Institute
Release Date : 2006
Licensing Occupations written by Morris M. Kleiner and has been published by W.E. Upjohn Institute this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006 with Competition categories.
"Attempts to present a systematic discussion of the major benefits and costs of occupational licensing to the economies of the United States and several European countries." - page xiii.
The Prevalence And Effects Of Occupational Licensing
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Author : Morris M. Kleiner
language : en
Publisher:
Release Date : 2008
The Prevalence And Effects Of Occupational Licensing written by Morris M. Kleiner and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2008 with Licenses categories.
This study provides the first nation-wide analysis of the labor market implications of occupational licensing for the U.S. labor market, using data from a specially designed Gallup survey. We find that in 2006, 29 percent of the workforce was required to hold an occupational license from a government agency, which is a higher percentage than that found in studies that rely on state-level occupational licensing data. Workers who have higher levels of education are more likely to work in jobs that require a license. Union workers and government employees are more likely to have a license requirement than are nonunion or private sector employees. Our multivariate estimates suggest that licensing has about the same quantitative impact on wages as do unions -- that is about 15 percent, but unlike unions which reduce variance in wages, licensing does not significantly reduce wage dispersion for individuals in licensed jobs.