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

20 Pages Posted: 11 Apr 2003 Last revised: 23 May 2021

See all articles by Morris M. Kleiner

Morris M. Kleiner

Humphrey School of Public Affairs; National Bureau of Economic Research (NBER)

Robert T. Kudrle

University of Minnesota, Twin Cities

Date Written: February 1992

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

Kleiner, Morris M. and Kudrle, Robert T., Do Tougher Licensing Provisions Limit Occupational Entry? The Case of Dentistry (February 1992). NBER Working Paper No. w3984, Available at SSRN: https://ssrn.com/abstract=300741

Morris M. Kleiner (Contact Author)

Humphrey School of Public Affairs ( email )

Minneapolis, MN 55455
United States
612-625-2089 (Phone)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Robert T. Kudrle

University of Minnesota, Twin Cities ( email )

420 Delaware St. SE
Minneapolis, MN 55455
United States

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