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Licensing Exam Difficulty and Entry Salaries in the US Market for Lawyers

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  • Mario Pagliero

Abstract

This article provides evidence of a correlation between licensing exam difficulty and salaries in a regulated profession. Exam difficulty is positively correlated with salaries across states and over time, both at the aggregate and individual state levels. The magnitude of this correlation is substantial: a 1 per cent increase in exam difficulty implies a 1.7 per cent increase in median entry‐level salaries. Exam difficulty does not significantly affect the inter‐quartile difference in salaries.

Suggested Citation

  • Mario Pagliero, 2010. "Licensing Exam Difficulty and Entry Salaries in the US Market for Lawyers," British Journal of Industrial Relations, London School of Economics, vol. 48(4), pages 726-739, December.
    • Handle: RePEc:bla:brjirl:v:48:y:2010:i:4:p:726-739
    DOI: 10.1111/j.1467-8543.2010.00810.x
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    1. Morris M. Kleiner & Alan B. Krueger, 2010. "The Prevalence and Effects of Occupational Licensing," British Journal of Industrial Relations, London School of Economics, vol. 48(4), pages 676-687, December.
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