Occupational Licensing and Accountant Quality: Evidence from the 150-Hour Rule

• 成果类型: Article
• 署名作者: Barrios, John M.
• 署名单位: Washington University (WUSTL); National Bureau of Economic Research; Washington University (WUSTL)
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.12408
• 发表日期: 2022
• 页码: 3-43
• 关键词: internal economics; job mobility; office size; pass rates; INVESTMENT; firm; requirement; promotion; wage; restrictions

摘要

I examine the effects of occupational licensing on the quality of certified public accountants (CPAs). I exploit the staggered adoption of the 150-hour rule, which increases the educational requirements for a CPA license. The analysis shows that the rule decreases the number of entrants into the profession, reducing both low- and high-quality candidates. Labor market proxies for quality find no difference between 150-hour rule CPAs and the rest. Moreover, rule CPAs exit public accounting at similar rates and have comparable writing quality to their nonrule counterparts. Overall, these findings are consistent with the theoretical argument that increases in licensing requirements restrict the supply of entrants and do little to improve quality in the labor market.