reference library

/reference library
reference library2018-06-08T14:23:35-07:00

This website features a collection of links to outside resources, many of which were cited in The Captured Economy, for readers interested in learning more about regressive regulation.

To filter the reference library by topic, please use the links on a topic page or open this page on a full-size screen and use the provided menu.

Occupational Licensing and Labor Market Fluidity

Morris M. Kleiner and Ming Xu


July 2020

We show that occupational licensing has significant negative effects on labor market fluidity defined as cross-occupation mobility. Using a balanced panel of workers constructed from the CPS and SIPP data,…
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The Value of Cosmetology Licensing to the Health, Safety, and Economy of America

Nam D. Pham and Anil Sarda

ndp analytics

December 2014

The objective of this report is to detail the health, safety and economic contributions of the professional beauty industry and the critical role professional beauty licensing plays in protecting those…
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Occupational Licensing Reform Across the United States

Marc Kilmer

Arkansas Center for Research in Economics

October 2018

Political leadership from the governor was one of the strongest factors influencing whether or not licensing was reformed. Governors accomplished this in a myriad of ways. Both Michigan Governor Rick…
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Occupational Licensing and the Limits of Public Choice Theory

Ryan Nunn and Gabriel Scheffler

Administrative Law Review Accord

April 2019

Public choice theory has long been the dominant lens through which economists and other scholars have viewed occupational licensing. According to the public choice account, practitioners favor licensing because they…
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Competitive Effects of Scope of Practice Restrictions: Public Health or Public Harm?

Sara Markowitz, E. Kathleen Adams, Mary Jane Lewitt, and Anne Dunlop

Journal of Health Economics

October 2016

The demand for health care and healthcare professionals is predicted to grow significantly over the next decade. Securing an adequate health care workforce is of primary importance to ensure the…
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Brother, may I?: the challenge of competitor control over market entry

Maureen K. Ohlhausen and Gregory P. Luib

Journal of Antitrust Enforcement


Those concerned with restrictions on innovative technologies and business models often decry the stultifying effects of a ‘Mother, May I?’ approach, whereby the innovator needs government permission to enter a…
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Challenging Government-Sponsored Private Regulation of Competitors

Alexander Volokh

Reason Foundation

May 22, 2014

It has been a longstanding practice in America for governments to give private entities made up of professionals in an industry the authority to regulate the profession (e.g., state bar…
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Benefits of Competition and Indicators of Market Power


The White House

April 2016

As highlighted in a recent White House report, the share of workers in occupations requiring some sort of State license grew fivefold over the last half of the 20th century,…
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Putting Licensing to the Test

Angela C. Erickson

Institute for Justice

October 2016

[T]his report puts occupational licensing to the test, using the District of Columbia’s now-defunct tour guide licensing scheme as a case study. It finds that the scheme had no effect…
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The Effects of Occupational Licensing Evidence from Detailed Business-Level Data

Marek Zapletal

Center for Economic Studies, US Census Bureau

February 2017

Occupational licensing regulation has increased dramatically in importance over the last several decades, currently affecting more than one thousand occupations in the United States. I use confidential U.S. Census Bureau…
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The Inverted Pyramid: 10 Less Restrictive Alternatives to Occupational Licensing

John Ross

Institute for Justice

November 2017

[E]mpirical evidence is scarce for the proposition that licensing protects the public. By contrast, it is widely recognized that licensing raises prices for consumers, restricts job opportunities and hinders innovation….
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The Effects of Occupational Licensure on Competition, Consumers, and the Workforce

Patrick McLaughlin, Matthew D. Mitchell, and Anne Philpot

Mercatus Center

November 3, 2017

Licensure is not the only or the most effective way to ensure quality. While occupational licensure is intended to protect consumers from harm, there are many other less-burdensome mechanisms to…
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Local Occupational Licensing Preemption


Foundation for Government Accountability

January 22, 2018

On many issues, statewide preemption of local policies is common, especially when local governments make it harder for state residents to earn a living. There are currently 25 states that…
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Occupational Licensing

Morris M. Kleiner

Journal of Economic Perspectives

Fall 2000

The costs of failing a licensing exam, for example, in dentistry is the estimated present value cost of failing the exam, which was $54,000 in 1997 dollars when reduced earnings…
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Control by Licensing Over Entry Into the Market

Irwin W. Silverman, LT Bennett Jr., and Irvin Lechliter

Law and Contemporary Problems

Spring 1941

No attempt has been made herein to explore exhaustively the countless number of restrictions which operate to harass the life of the small business man, regardless of his calling. But…
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Blooming Nonsense: Do Claims about the Consumer Benefit of Licensure Withstand Empirical Scrutiny?

Dick M. Carpenter II


Spring 2011

To see whether floral arrangements for sale in Louisiana are indeed appreciably superior to — or even appreciably different from — those made by unlicensed florists, I conducted a randomized…
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Enhancing Quality or Restricting Competition: The Case of Licensing Public School Teachers

Morris M. Kleiner

University of St. Thomas Journal of Law and Public Policy

Spring 2011

The percentage of the workforce affected by occupational licensing has grown nationally and in public education. In assessing educational attainment and quality, there is little evidence that licensing has improved…
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The Costs of Free Entry: An Empirical Study of Real Estate Agents in Greater Boston

Panle Jia Barwick and Parag A. Pathak

RAND Journal of Economics

Spring 2015

This paper studies the real estate brokerage industry in Greater Boston, an industry with low entry barriers and substantial turnover. Using a comprehensive dataset of agents and transactions from 1998-2007,…
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Analyzing the Extent and Influence of Occupational Licensing

Morris M. Kleiner and Alan B. Krueger

Journal of Labor Economics 31, no.2, pt. 2 (2013): S173–202

May 2009

This study examines the extent and influence of occupational licensing in the U.S. using a specially designed national labor force survey. Specifically, we provide new ways of measuring occupational licensing…
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The Purpose of Licensing

Thomas G. Moore

The Journal of Law and Economics

October 1961

Only the correlation between the median year of licensing and the percentage of an occupation belonging to its association supports the profit hypothesis. This could, of course, be the result…
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Occupational Licensing and the Public Interest

Alex Maurizi

Journal of Political Economy

April 1974

Occupational licensing has been justifiable in the view of legislatures on the grounds that it protects the public interest; often, however, it is the producers of the good or service…
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Occupational Restrictions and the Quality of Service Received: Some Evidence

Sidney L. Carroll and Robert J. Gaston

Southern Economic Journal

April 1981

This study is the first broad exploratory empirical investigation on the effect on the received quality of service from state licensed occupations. It sought to answer purely factual questions about…
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An Economic Analysis of Taxicab Regulation

Mark W. Frankena and Paul A. Pautler

Federal Trade Commission

May 1984

The principal conclusion of this report is that no persuasive economic rationale is available for some of the most important regulations. Restrictions on the total number of firms and vehicles…
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Physician Licensure Legislation and the Quality of Medical Care

Chris Paul

Atlantic Economic Journal

December 1984

To summarize, the empirical tests used in this study have found no support for the contention that physicians were initially regulated at the behest of the general population. Rather, empirical…
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Investment, Moral Hazard, and Occupational Licensing

Carl Shapiro

The Review of Economic Studies

October 1986

I analyse occupational licensing as an input regulation that requires minimum levels of human capital investment by professionals. By raising professionals’ training levels, licensing helps alleviate moral hazard problems associated…
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Do Tougher Licensing Provisions Limit Occupational Entry? The Case of Dentistry

Morris M. Kleiner, Robert T. Kudrle


February 1992

The effect of licensing as a mechanism to control entry into occupations has been a neglected area of both regulation and labor market research. This study examines the role of…
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Does Regulation Affect Economic Outcomes?: The Case of Dentistry

Morris M. Kleiner, Robert T. Kudrle

Journal of Law and Economics

October 2000

This study examines the role of variations in occupational licensing policies and practices in improving the outputs of services provided to consumers, and the effect of restrictive regulations on the…
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The Costs and Benefits of Occupational Regulation

Carolyn Cox and Susan Foster

Federal Trade Commission


This paper examines the costs and benefits of occupational regulation. Over 800 occupations arc licensed by at least one of the fifty states. When properly designed and administered, occupational licensing…
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Occupational Licensing: Scant Treatment in Labor Texts

E. Frank Stephenson and Erin E. Wendt

Econ Journal Watch

May 2009

According to the Council of State Governments, more than 800 occupations are subject to licensing requirements in at least one state. It is, therefore, not surprising that a 2006 Gallup…
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Recruitment Restrictions and Labor Markets: Evidence from the Postbellum U.S. South

Suresh Naidu

Journal of Labor Economics

April 2010

This article studies the effect of recruitment restrictions on mobility and wages in the postbellum U.S. South. I estimate the effects of criminal fines charged for “enticement” (recruiting workers already…
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Battles Among Licensed Occupations: Analyzing Government Regulations on Labor Market Outcomes for Dentists and Hygienists

Morris M. Kleiner and Kyoung Won Park

National Bureau of Economic Research Working Paper no. 16560

November 2010

Occupational licensing is among the fastest-growing labor market institutions in the U.S. economy. One of the key features of occupational licensing is that the law determines who gets to do…
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Occupational Licensing: Protecting the Public Interest or Protectionism?

Morris M. Kleiner

W. E. Upjohn Institute for Employment Research Policy Paper no. 2011-009

July 2011

The issue of the government regulation of occupations involves the role of government in reconciling the special interests of the practitioners with those of society. The strictest form of occupational…
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Stages of Occupational Regulation: Analysis of Case Studies

Morris M. Kleiner

W. E. Upjohn Institute for Employment Research

January 2013

Business enterprises are rarely formed as unionized firms. Similarly, even though occupations develop similar tasks and common procedures for doing a job, they are not begun as licensed occupations. Occupations…
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The Impact of Potential Labor Supply on Licensing Exam Difficulty

Mario Pagliero

Labour Economics 25 (2013): 141–52

December 2013

Entry into licensed professions requires meeting competency requirements, typically assessed through licensing examinations. This paper explores whether the number of individuals attempting to enter a profession (potential supply) affects the…
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Florida’s Dirty Dozen: Twelve Repealers That Can Boost Business, Create Jobs, and Change Florida’s Economic Policy for the Better

Ari Bargil and Claudia Murray Edenfield

Institute for Justice

February 2014

Many of these arbitrary regulations are passed at the request of professional associations and government boards that want to protect the pocket books of their members by shutting out new…
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