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Labor Economics

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Stringency In Occupational Licensing Requirements: Explanations And Effects, Nicholas Hall May 2023

Stringency In Occupational Licensing Requirements: Explanations And Effects, Nicholas Hall

Honors Scholar Theses

In this paper, I explore explanations for and effects of variation in stringency in occupational licensing requirements across states. Focusing on data on cosmetology, I first analyze the effect of characteristics of the professional licensing board, including its membership composition and department within the state government, on the regulations the board implements. I find evidence that the department of a board impacts its licensing fees, with health-based departments requiring lower fees than commerce- and general licensing-based departments. I then examine the effects of stringency on wages and the number of practitioners in an area. I find evidence that the number …