Occupational Licensing and Quality: Distributional and Heterogeneous Effects in the Teaching Profession

Larsen, Bradley

doi:10.2139/ssrn.2387096

Cited by 27 publications

(22 citation statements)

References 39 publications

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“…Although impact on quality of service is theoretically central to arguments for occupational licensing regulation, empirical evidence suggests that this relationship is weak at best. Larsen () and Hotz and Xiao () find mild positive effects, but most studies find either no (Angrist and Guryan ; Kleiner and Kudrle ) or negative (Carroll and Gaston ; Kugler and Sauer ) effects. The absence of differences in malpractice insurance rates between licensed and unlicensed states (Kleiner ) is consistent with weak effects of licensing on quality.…”

Section: Introductionmentioning

confidence: 99%

The Effects of Occupational Licensing: Evidence from Business‐Level Data

Zapletal¹

2018

Brit J Industrial Rel

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Occupational licensing currently affects more than 1,000 occupations in the United States. I use confidential US Census Bureau business micro-data to shed light on the effect of occupational licensing in cosmetology on key market outcomes and study its effect on the providers of occupational training. Occupational licensing regulation does not seem to affect the equilibrium number of practitioners or prices of services to consumers, but is associated with significantly lower practitioner entry and exit rates. I further find states with more stringent licensing requirements to have more instructors and a larger median size of training facilities, suggesting possible barriers to entry for the training schools. Instructors, however, do not earn more in such states.

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Section: Introductionmentioning

confidence: 99%

The Effects of Occupational Licensing: Evidence from Business‐Level Data

Zapletal¹

2018

Brit J Industrial Rel

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“…Over the course of the past decade or so, scholars have studied the licensing of doctors (Broscheid & Teske [2003], Kugler & Sauer [2005]), radiology technicians ( Timmons & Thornton [2008]), dentists (Kleiner & Kudrle [2000]), dental hygienists (Wanchek [2010]), teachers (Larsen[2012]), electricians (Kleiner & Park [2011]), mortgage brokers (Kleiner & Todd [2007], Shi [2012]), florists (Carpenter [2012]), manicurists (Federman, Harrington & Krynski [(2006]), cremators (Harrington & Krynski [2002]), barbers (Timmons & Thorton (2010)), and lawyers in America (Pagliero [2010(Pagliero [ , 2011) and Italy (Pellizzari & Pica [2011]). Think tanks have found licensing a perennial source of outrage and amusement: e.g., the American Enterprise Institute on tour guides and hair braiders (2011,2012), the Brookings Institution on lawyers (2012), and the Heritage Foundation on plumbers (2008).…”

Section: Introductionmentioning

confidence: 99%

“…Although the think tanks focus on the most egregious licensing laws and scholars vary in the fraction of licensing they attribute to public-interest motives and cartelization, we usually take it for granted that even cartelizing regimes raise the quality of services (Larsen [2012] and Kugler & Sauer [2005] are noteworthy exceptions). Moore's tree-expert law may not raise social welfare.…”

Section: Introductionmentioning

confidence: 99%

Lowering the Bar to Raise the Bar: Licensing Difficulty and Attorney Quality in Japan

Ramseyer¹,

Rasmusen²

2015

jjs

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Under certain circumstance, a relaxation in occupational licensing standards can increase the quality of those who enter the industry. The effect turns on the opportunity costs of preparing for the licensing examination: making the test easier can increase the quality of those passing if it lowers the opportunity costs enough to increase the number of those willing to go to the trouble of taking the test. We explore the theoretical circumstances under which this can occur and the actual effect of the relaxation of the difficulty of the bar exam in Japan from 1992 to 2011.

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“…Appendix A illustrates examples from Angrist and Lang (2004), Larsen (2014), Palmer (2011), andBackus (2014).…”

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confidence: 99%

“…when no group-level unobservables are present). Larsen (2014) found that the grouped approach was significantly faster than estimating parameters in a single quantile regression. …”

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confidence: 99%

IV Quantile Regression for Group-level Treatments, with an Application to the Distributional Effects of Trade

Chetverikov¹,

Larsen²,

Palmer

2015

Self Cite

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We present a methodology for estimating the distributional effects of an endogenous treatment that varies at the group level when there are group-level unobservables, a quantile extension of Hausman and Taylor (1981). Because of the presence of group-level unobservables, standard quantile regression techniques are inconsistent in our setting even if the treatment is independent of unobservables. In contrast, our estimation technique is consistent as well as computationally simple, consisting of group-by-group quantile regression followed by two-stage least squares. Using the Bahadur representation of quantile estimators, we derive weak conditions on the growth of the number of observations per group that are sufficient for consistency and asymptotic zero-mean normality of our estimator. As in Hausman and Taylor (1981), micro-level covariates can be used as internal instruments for the endogenous group-level treatment if they satisfy relevance and exogeneity conditions. An empirical application indicates that low-wage earners in the US from 1990--2007 were significantly more affected by increased Chinese import competition than high-wage earners. Our approach applies to a broad range of settings in labor, industrial organization, trade, public finance, and other applied fields.

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Occupational Licensing and Quality: Distributional and Heterogeneous Effects in the Teaching Profession

Cited by 27 publications

References 39 publications

The Effects of Occupational Licensing: Evidence from Business‐Level Data

The Effects of Occupational Licensing: Evidence from Business‐Level Data

Lowering the Bar to Raise the Bar: Licensing Difficulty and Attorney Quality in Japan

IV Quantile Regression for Group-level Treatments, with an Application to the Distributional Effects of Trade

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