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The Political Economy of Occupational Licensing Associations

Author

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  • Nicola Persico

Abstract

This article studies the internal politics of a licensing association with regard to expansion of the licensure and self-regulation. A theoretical model is presented of a professional association that has the power to restrict entry, and yet a majority of its members may prefer to allow entry, even when doing so reduces the total revenue of its members. This may happen due to a conflict of interest among professional sub-specialties. On the other hand, the model predicts no heterogeneity of interests within the association regarding self-regulation. (JEL J44)

Suggested Citation

  • Nicola Persico, 2015. "The Political Economy of Occupational Licensing Associations," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 31(2), pages 213-241.
    • Handle: RePEc:oup:jleorg:v:31:y:2015:i:2:p:213-241.
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    File URL: http://hdl.handle.net/10.1093/jleo/ewu011
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    Citations

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    Cited by:

    1. Jing Cai & Morris M. Kleiner, 2016. "The Labor Market Consequences of Regulating Similar Occupations: The Licensing of Occupational and Physical Therapists," Upjohn Working Papers 16-259, W.E. Upjohn Institute for Employment Research.
    2. Prüfer, Jens, 2018. "Trusting privacy in the cloud," Information Economics and Policy, Elsevier, vol. 45(C), pages 52-67.
    3. Benjamin J. McMichael, 2017. "The Demand for Healthcare Regulation: The Effect of Political Spending on Occupational Licensing Laws," Southern Economic Journal, John Wiley & Sons, vol. 84(1), pages 297-316, July.
    4. Morris M. Kleiner, 2016. "Battling over Jobs: Occupational Licensing in Health Care," American Economic Review, American Economic Association, vol. 106(5), pages 165-170, May.
    5. Stefano Comino & Alberto Galasso & Clara Graziano, 2017. "The Diffusion of New Institutions: Evidence from Renaissance Venice's Patent System," NBER Working Papers 24118, National Bureau of Economic Research, Inc.
    6. Peter Blair & Bobby Chung, 2017. "Job Market Signaling through Occupational Licensing," Working Papers 2017-50, Human Capital and Economic Opportunity Working Group.
    7. Jing Cai & Morris M. Kleiner, 2020. "The Labor Market Consequences of Regulating Similar Occupations: the Licensing of Occupational and Physical Therapists," Journal of Labor Research, Springer, vol. 41(4), pages 352-381, December.
    8. Peter Q. Blair & Bobby W. Chung, 2021. "Informed Choices: A Model of Occupational Licensing and Statistical Discrimination," Upjohn Working Papers 21-351, W.E. Upjohn Institute for Employment Research.

    More about this item

    JEL classification:

    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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