Job Market Monitor
Occupational Licensing
Occupational Licensing and Non-Competition Agreements in US – Declining in dynamism, but attempts to reform often face stiff opposition
Labour market fluidity has declined substantially since the late 1990s and coincides with a period of sluggish productivity growth as discussed in Chapter 2. State-level labour market regulation contributes to some of the concerning lack of dynamism, notably occupational licensing and non-competition agreements, which both cover around one fifth of American workers. Labour market regulation … Continue reading
Licensing of College-Educated Workers in US – A significant advantages in terms of earnings and labor market participation
More than one third of college-educated workers have a license that provides the right to practice a particular occupation. In contrast to certificates, these licenses—serving either as a productivity signal or acting as a restrictive practice—are associated with significantly higher earnings. Thus, it is possible that some part of the returns to college are in … Continue reading
Occupational Licensing in US – Who they are and the effects on wages and unemployment
Who is licensed? Using the newly released Bureau of Labor Statistics data, it is possible to describe licensed workers and then examine a number of important economic implications of licensing. Licensing varies substantially by occupation. Legal, education, and healthcare occupations feature licensing at particularly high rates, as shown in Figure 1. Note that the increase … Continue reading
Occupational Licensing in US – Those with a license earn higher pay, are more likely to be employed, and have a higher probability of receiving retirement and pension plan offers
Occupational licensing has become increasingly important in the regulation of services in the United States. The number of occupations requiring a license has grown since the 1970s, as has the percentage of workers who have attained or are covered by a governmental license. The number of studies analyzing occupational regulation, however, has not kept pace. … Continue reading
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