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Do Tougher Licensing Provisions Limit Occupational Entry? The Case of Dentistry

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  • Morris M. Kleiner
  • Robert T. Kudrle

Abstract

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 occupational licensing for entry into dentistry, an occupation with standards that vary by state. Our research first closely replicates Freeman's previous work on labor market cobwebs by employing national data to examine purely market phenomena in the determination of training for the dental profession. We subsequently approximate the government barrier to practice in the profession by adding a weighted average state examination pass rate to the previous model. Next, we employ pooled cross-section time series analysis to explore market determinants of professional entry with state level data. Finally, these results are supplemented by measures of statutory and pass rate entry restrictiveness. Our most consistent evidence suggests that a higher state licensing failure rate deters entry into dental practice.

Suggested Citation

  • Morris M. Kleiner & Robert T. Kudrle, 1992. "Do Tougher Licensing Provisions Limit Occupational Entry? The Case of Dentistry," NBER Working Papers 3984, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:3984
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    4. Simon Rottenberg, 1980. "Occupational Licensure and Regulation," Books, American Enterprise Institute, number 968900, September.
    5. Mattila, J. Peter & Orazem, Peter, 1991. "Human Capital, Uncertain Wage Distributions, and Educational and Occupational Choices," Staff General Research Papers Archive 10841, Iowa State University, Department of Economics.
    6. Gary A. Zarkin, 1985. "Occupational Choice: An Application to the Market for Public School Teachers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(2), pages 409-446.
    7. Orazem, Peter F & Mattila, J Peter, 1991. "Human Capital, Uncertain Wage Distributions, and Occupational and Educational Choices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(1), pages 103-122, February.
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    Cited by:

    1. Ashok Bardhan & Daniel L. Hicks & Dwight Jaffee, 2013. "How responsive is higher education? The linkages between higher education and the labour market," Applied Economics, Taylor & Francis Journals, vol. 45(10), pages 1239-1256, April.
    2. Morris M. Kleiner & Robert T. Kudrle, 1997. "Does Regulation Affect Economic Outcomes?: The Case of Dentistry," NBER Working Papers 5869, National Bureau of Economic Research, Inc.
    3. Kleiner, Morris M & Kudrle, Robert T, 2000. "Does Regulation Affect Economic Outcomes? The Case of Dentistry," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 547-582, October.

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