Occupational Licensing and Minority Participation in Professional Labor Markets

• 成果类型: Article
• 署名作者: Sutherland, Andrew G.; Uckert, Matthias; Vetter, Felix W.
• 署名单位: Massachusetts Institute of Technology (MIT); University of Amsterdam; University of Mannheim
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.12518
• 发表日期: 2024
• 页码: 453-503
• 关键词: investment; requirement; barrier; lemons

摘要

We examine the staggered adoption of additional educational requirements (150-hour rule) for Certified Public Accountants (CPAs) to understand the effects of occupational licensing on minority participation in professional labor markets. The 150-hour rule increased the educational requirement for CPAs from 120 to 150 credit hours, effectively adding a fifth year of study. We find a 13% greater entry decline following the requirement's enactment for minority than nonminority CPA candidates. Our analyses of parental income and financial aid availability point to a socioeconomic status channel explaining the differential entry declines. Studying exam passing patterns, professional misconduct, and job postings we find a deterioration, or at best, no change in CPA quality following enactment.