Occupational licensing and income inequality in the states
Bibliographic Data
| ID | 11680809 |
|---|---|
| Authors | Wendy Chen (0000-0001-8518-9591, Texas Tech University Lubbock Texas USA), William W Franko (0000-0002-2662-7827, West Virginia University Morgantown West Virginia USA), Robert J Mcgrath (0000-0001-8963-3231, George Mason University Fairfax Virginia USA, corresponding author) |
| Year | 2024 |
| Volume | 44 |
| Issue | 4 |
| Pages | 1374-1393 |
| Publication date | 2024-11-25 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Policy Analysis and Management (JOURNAL) |
| Journal identifiers | ISSN: 0276-8739 • E-ISSN: 1520-6688 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/pam.22660 |
| OpenAlex | W4404697189 |
| Language | EN |
| References cited | 62 |
The decades‐long rise of economic inequality in the U.S. has led to a growing body of literature examining the role of policy in shaping income differences. We examine one such policy: occupational licensing regulations. Licensing can restrict employment and reduce market competition, which can then inflate wages for those in licensed professions. Existing research demonstrates that occupational licensure does increase wages in specific industries, leading some scholars to argue that licensing makes income inequality worse. We add nuance by arguing that the effect of licensing on inequality is dependent on which occupation classes experience the largest wage premiums. Using a comprehensive over‐time database of state licensing regulations, we first demonstrate that medium‐ and low‐wage jobs garner larger wage premiums than high‐wage occupations. Second, consistent with this result we then show that the occupational licensing regulations have the overall effect of reducing state income inequality. This research contributes to our understanding of the causes of growing inequality and how public policy can shape economic disparities through sometimes unintended and indirect ways
Demographic economics · Economic inequality · Economics · Inequality · Labour economics · Microeconomics · Occupational licensing · Mathematics · Occupational and Professional Licensing Regulation
The New Economic Populism
The Politics of Income Inequality in the United States
Interpretation and identification of within-unit and cross-sectional variation in panel data models
Analyzing the Extent and Influence of Occupational Licensing on the Labor Market
Computing Inequality
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Union Membership and Coverage Database from the Current Population Survey
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The Consequences of State Economic Development Strategies on Income Distribution in the American States, 1976 to 1994
The Rise of Intra-Occupational Wage Inequality in the United States, 1983 to 2002
The New Closed Shop? The Economic and Structural Effects of Occupational Licensure
The Rise of the Super-Rich
Who Profits from Occupational Licensing
Occupational Licensing
Institutional Changes and Rising Wage Inequality
Handbook of Labor Economics
| Citation velocity | historical |
|---|---|
| Highly cited | No |