A Welfare Analysis of Occupational Licensing in US States

• 成果类型: Article
• 署名作者: Kleiner, Morris M.; Soltas, Evan J.
• 署名单位: University of Minnesota System; University of Minnesota Twin Cities; National Bureau of Economic Research
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdad015
• 发表日期: 2023
• 页码: 2481-2516
• 关键词: local economic-development; MARKET; QUALITY; requirements; INEQUALITY; selection; outcomes; barrier; college; CHOICE

摘要

We assess the welfare consequences of occupational licensing for workers and consumers. We estimate a model of labour market equilibrium in which licensing restricts labour supply but also affects labour demand via worker quality and selection. On the margin of occupations licensed differently between U.S. states, we find that licensing raises wages and hours but reduces employment. We estimate an average welfare loss of 12% of occupational surplus. Workers and consumers respectively bear 70% and 30% of the incidence. Higher willingness to pay offsets 80% of higher prices for consumers, and higher wages compensate workers for 60% of the cost of mandated investment in occupation-specific human capital. Welfare effects appear more favourable in occupations in which licensing is more common.