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Thomas Snyder, Elsa Mattson and Alex Kanode
''Licensing growth and its effect on employment concentration''
( 2022, Vol. 42 No.2 )
This study examines the relationship between the growth in state occupational licensing regulations and the change in the concentration of practitioners over time in the U.S. We exploit cross-state variances in occupational licensing data from the available datasets in 1993 and 2017. Our focus is on service-providing, low-to-moderate-income occupations. The general trend has been for states to license more occupations and to increase the burden of these licensed occupations over time. The states that had a relatively low level of licensing burdens in 1993 generally had the most growth in licensing. We find that counties with more concentrated service-providing industries are in states with higher licensing burdens, but an initial higher licensing burden is associated with lower levels of sector concentration over time.
Keywords: Occupational Licensing, Employment Quotient, State Regulation
JEL: J4 - Particular Labor Markets: General
J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining: General
Manuscript Received : Jul 28 2021 Manuscript Accepted : Jun 30 2022

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