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The Impact of Potential Labor Supply on Licensing Exam Difficulty in the US Market for Lawyers

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  • Mario Pagliero

    (Department of Economics and Public Finance "G. Prato", University of Torino)

Abstract

Entry into licensed professions requires meeting competency requirements, typically assessed through licensing examinations. In the market for lawyers, there are large differences in the difficulty of the entry examination both across states and over time. The paper explores whether the number and quality of individuals attempting to enter the profession (potential supply) affects the difficulty of the entry examination. The empirical results show that a larger potential supply leads to more difficult licensing exams and lower pass rates. This implies that licensing partially shelters the legal market from supply shocks.

Suggested Citation

  • Mario Pagliero, 2011. "The Impact of Potential Labor Supply on Licensing Exam Difficulty in the US Market for Lawyers," Working papers 18, Former Department of Economics and Public Finance "G. Prato", University of Torino, revised May 2013.
    • Handle: RePEc:tur:wpaper:18
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    References listed on IDEAS

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    Cited by:

    1. Piotr Bialowolski & Dorota Weziak-Bialowolska, 2021. "What Does It Take to Be a Good Lawyer? The Underpinnings of Success in a Rapidly Growing Legal Market," Sustainability, MDPI, vol. 13(11), pages 1-15, May.
    2. Mario Pagliero, 2019. "Occupational Licensing in the EU: Protecting Consumers or Limiting Competition?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 55(1), pages 137-153, August.
    3. Cascino, Stefano & Tamayo, Ane & Vetter, Felix, 2020. "Labor market effects of spatial licensing requirements: evidence from CPA mobility," LSE Research Online Documents on Economics 107054, London School of Economics and Political Science, LSE Library.
    4. Ilya Kukaev & Edward J. Timmons, 2023. "Certifiably employable?: The effects of occupational regulation on unemployment duration," Working Papers 23-02, Department of Economics, West Virginia University.
    5. Pagliero, Mario, 2018. "Occupational Licensing, Labor Mobility, and the Unfairness of Entry Standards," CEPR Discussion Papers 13076, C.E.P.R. Discussion Papers.
    6. Maria Koumenta & Mario Pagliero, 2019. "Occupational Regulation in the European Union: Coverage and Wage Effects," British Journal of Industrial Relations, London School of Economics, vol. 57(4), pages 818-849, December.
    7. Paul Oyer & Scott Schaefer, 2012. "Firm/Employee Matching: An Industry Study of American Lawyers," NBER Working Papers 18620, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    occupational licensing; legal market; bar exam; minimum standards; entry regulation;
    All these keywords.

    JEL classification:

    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • K2 - Law and Economics - - Regulation and Business Law

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