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From the article:
Some evidence suggests that licensing does restrict the supply of
workers in regulated occupations. One application focuses on the
comparison of occupations that are licensed in some states and not in
others. The occupations examined were librarians (licensed in 19
states), respiratory therapists (licensed in 35 states), and dietitians
and nutritionists (licensed in 36 states) from 1990 to 2000 using Census
data (Kleiner, 2006). Using controls for state characteristics, the
multivariate estimates showed that in the states where the occupations
were unlicensed there was a 20 percent faster growth rate than in states
that did license these occupations. Another study found that the
imposition of greater licensing requirements for funeral directors is
associated with fewer women holding jobs as funeral directors relative
to men by 18 to 24 percent (Cathles, Harrington, and Krynski, 2009).
and
The results of these wage equations are consistent with the
interpretation that licensing policy enables the individuals in a
licensed job to obtain a degree of monopoly control, or the ability to
"fence out" competitors for a service, which results in increased wages
for licensed workers.
Source: David Henderson, "The Gains from Getting Rid of "Run Amok" Occupational Licensing," econlog.com, January 31, 2014
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