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  3. American Economic Journal: Economic Policy
  4. August 2020
  5. Is Occupational Licensing a Barrier to Interstate Migration?

Is Occupational Licensing a Barrier to Interstate Migration?

  • Janna E. Johnson
  • Morris M. Kleiner
American Economic Journal: Economic Policy
vol. 12, no. 3, August 2020
(pp. 347-73)
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Abstract

Occupational licensure may limit the interstate movement of workers because it adds to the cost of moving between states. We analyze the interstate migration of 22 licensed occupations, proxying for the difficulty of the regulations by comparing state-specific licensed occupations to those with national licensing exams. Our empirical strategy also uses individuals who move a long distance, removing the influence of occupation characteristics and self-selection of migration-averse individuals into licensed occupations. Our estimates show that occupational licensing reduces interstate migration, but the magnitude of the effect can only account for a small part of the overall decline in recent decades.

Citation

Johnson, Janna E., and Morris M. Kleiner. 2020. "Is Occupational Licensing a Barrier to Interstate Migration?" American Economic Journal: Economic Policy, 12 (3): 347-73. DOI: 10.1257/pol.20170704

Additional Materials

JEL Classification

  • J44 Professional Labor Markets; Occupational Licensing
  • J61 Geographic Labor Mobility; Immigrant Workers
  • R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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