Full Citation
Title: The Heterogenous Effects of Occupational Licensing on Labor Market Outcomes: Three Chapters
Citation Type: Dissertation/Thesis
Publication Year: 2023
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Abstract: The first chapter, “The Labor Market Effects of Occupational Licensing in the Public Sector”, examines the influence of occupational regulation for public sector workers. The 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, it next examines how licensing impacts key labor market outcomes, such as wages, hours worked, and employment in the public sector. The 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, it is found that being in a licensed occupation in the public sector raises wages by about 5.4% 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, the 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.
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Authors: Wang, Wenchen
Institution: University of Minnesota
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Pages: 1-201
Data Collections: IPUMS CPS
Topics: Labor Force and Occupational Structure
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