ABSTRACT This article explores the experiences of international medical graduates (IMGs) in Aotearoa New Zealand, who must undertake the New Zealand Registration Examination (NZREX) pathway to gain medical registration. Drawing on mixed methods research, the paper examines how occupational licensing frameworks can reproduce colonial hierarchies, privileging qualifications and experience from the Global North. Many other IMGs face prolonged underemployment, identity loss and systemic disadvantage. These outcomes reflect broader tensions between migration, development and recognition. The article argues for policy reforms to address brain waste and ensure equitable professional opportunities for migrants in Aotearoa New Zealand and other postcolonial settings.

Does reducing interstate licensing barriers increase the supply of mental health providers? We study this question using the U.S. Psychology Interjurisdictional Compact (PSYPACT), which allows psychologists to practice across state lines via telemedicine without obtaining additional state licenses. Because interstate telemedicine entry is difficult to track using physical practice locations, we utilize data from a large mental health provider search platform, where providers choose which zipcodes they are listed in as search results. Leveraging states' staggered accession timings for identification, we find a nuanced supply response: although joining PSYPACT increases listings in a state by 7.7% within a year, the response is entirely driven by incumbent psychologists within a state listing for the first time. We find evidence consistent with incumbents responding to a perceived threat of entry, as states with ex ante high licensing costs exhibit the largest treatment effects, and incumbents choose to list in underserved, high-income areas within those states.

Is occupational licensing a barrier to self-employment?

Occupational licensing—the requirement that individuals attain a license to legally perform a specific job—is now necessary for over a fifth of the US workforce. The policy is intended to protect consumers by ensuring members of licensed occupations meet a minimum quality standard but comes at the cost of higher prices for their services. Economic theory and research support the argument that at least in some cases the costs of licensure exceed its benefits. Incumbent members of licensed occupations gain from the higher wages caused by licensure policies, creating a strong incentive for them to push for stricter regulations and resist any efforts to remove or loosen licensure requirements. However, despite bipartisan interest in licensure reform, data limitations and vast heterogeneity in licensure policies limit the usefulness of existing research in guiding its design.

This scoping review synthesizes U.S.-based evidence on correctional education, in-custody certification, and employer recognition to evaluate their impact on post-release employment and recidivism. Drawing on studies and reports published between 2018 and 2025, the review follows the Arksey and O’Malley framework, incorporating sources from academic databases and policy organizations. Studies were screened and thematically analyzed to map program types, employer perspectives, labor-market outcomes, systemic barriers, and policy gaps. Findings indicate that vocational and accredited postsecondary programs, particularly those aligned with industry standards and supported by employer partnerships, consistently improve employment prospects and reduce reoffending, though effect sizes vary and long-term wage outcomes remain mixed. Employer recognition is strongest for nationally recognized and licensed credentials, especially when formal employer linkages are present; informal or non-accredited training often fails to translate into hirability. Persistent barriers include occupational licensing restrictions, background-check practices, stigma, discontinuities between prison training and community credentialing, and uneven access to programs and funding. Policy recommendations emphasize restoring and expanding Pell-eligible postsecondary offerings, standardizing credential portability, implementing fair-chance licensing reforms, scaling employer-linked apprenticeships and hiring pipelines, and investing in reentry supports, such as case management and pre-release licensing assistance. The review calls for rigorous empirical research, including longitudinal cohort studies, employer field experiments, cost-effectiveness analyses, and comparative state-level evaluations to identify which credential types and employer-facing interventions yield durable labor-market returns and equitable outcomes. Coordinated policy, sustained funding, and strengthened accreditation-to-licensure pathways are essential to convert in-custody learning into meaningful employment opportunities for individuals reentering society.

The industry costs and benefits of occupational licensing: measuring differences in establishment behavior and quality

How to boost income mobility in the UK IEA Discussion Paper No.122

Abstract Attaining occupational licenses is considered a career development option for younger workers because the attainment cost outweighs the benefits for older workers. Contrary to this expectation, a significant proportion of workers attain licenses in their later lives. However, the reasons and outcomes of later-life attainment of occupational licenses are not well-documented. This study investigates and compares the sociodemographic and economic predictors of later-life attainment of occupational licenses and the post-attainment work and retirement decisions before and after the COVID-19 pandemic. Using the sample of respondents aged between 55 and 63 from the Current Population Studies 2018-2019 (men = 1,927 and women = 1,576) and 2023-2024 (men = 1,501 and women = 1,182), I first conduct logistic regressions to examine the predictors of later-life attainment. Then, I use clustered competing risk analysis with propensity score matching to compare the choice of retirement pathways of newly licensed and unlicensed workers in pre- and post-pandemic cohorts. The results show that men’s license attainment decreased (OR = 0.439) after the pandemic while women’s attainment increased (OR = 8.399). Furthermore, newly licensed women are more likely to move to different employers than unlicensed women before and after the pandemic (SHR = 1.50 and 1.23 respectively), while newly licensed men are more likely to switch to part-time than unlicensed men after the pandemic (SHR = 3.75). These results imply that the purpose of later-life attainment of occupational licenses varies by gender and period yet contribute to longer work lives by taking on alternative retirement pathways.

Occupational licensing is the fastest-growing labor market institution, and a significant portion of newly licensed individuals are older workers. This study introduces occupational licensing as an influential factor of later-life work and retirement by investigating the sociodemographic and economic characteristics of older workers newly attaining licenses and the choices of work adjustments after attaining licenses, as well as measuring the changes in these trends before and after the COVID-19 pandemic. I use the sample of workers aged between 50 and 60 from the IPUMS-CPS 2017-2019 (n = 3,831) and 2023-2025 (n = 2,674). I use propensity score matching to investigate the sociodemographic and economic characteristics of older workers newly attaining licenses, multinomial logistic regression with two-stage residual inclusion to examine the choice of work adjustments after newly attaining licenses, and linear regression to predict the reasons for newly attaining licenses. Older workers with more resources, from historically underrepresented groups, and self-employed are more likely to newly attain licenses, yet there is no statistical difference in license attainment before and after the pandemic. Attaining licenses increases the likelihood of moving to different employers before and after the pandemic, yet the reason for moving cannot be determined: career development or bridge employment. Prolonging the labor force participation of older workers is a growing interest. Subsidizing older workers' license attainment will contribute to prolonging their labor force participation by providing financial, psychological, and social benefits throughout their remaining work life-course.

ObjectivesShortages of healthcare professionals are an ongoing challenge, but administrative data systems typically lack systematically collected data on occupation. This study outlines the development of data sharing agreements with occupational licensing authorities in New Brunswick, Canada, and uses resulting linked data to study the employment and retention decisions of professionals. MethodsWe describe engagements with the licensing authorities of three regulated occupations - registered nurses, paramedics and social workers - that led to the development and approval of data sharing agreements with each authority. We focus particular attention on data safeguards and the role of those authorities in the subsequent use of their data. We then outline the data sharing and linkage processes that combined occupational regulatory data with postsecondary education data and population registry data drawn from public health insurance records. Finally, we present results on the employment and retention outcomes of individuals licensed to practice in these occupations. ResultsWe engaged with senior administrators in the licensing bodies for three regulated health occupations in NB to identify priority questions and challenges around recruitment and retention of individuals in those occupations, including consideration of new pathways to licensure such as practice-ready assessment. These discussions led to the development of formal data sharing agreements between the licensing bodies and our organization, a provincial university-based data custodian, that involved the transfer of identifiable, linkable person-level registry information. Separate analyses were undertaken of employment and retention decisions of individuals in each occupation. Common themes identified for each occupation include significant rates of exit within five years of commencing work for those individuals not originally from NB, but not for NB-born individuals, even those who were educated outside the province. ConclusionRegulatory data from licensing bodies is a valuable source of information on employment in specific occupations of interest when broader population-level systematic collection of data on occupation of employment is unavailable. Linked person-level data is crucial for understanding entry into and exit from health occupations facing chronic shortages.

ABSTRACTIn the United States, occupational licensing is about twice as prevalent in the public sector as in the private sector. However, the influence of occupational regulation for public sector workers and how it compares with that of private sector workers has not been analyzed in detail. Our study examines how licensing is associated with key labor market outcomes of wages and part‐time working status. Our results show that having an occupational license has positive associations with hourly wages and negative associations in both sectors with the probability of engaging in part‐time work, mirroring licensing's general relationships. When we disaggregate licensing's associations by sector, its wage association is less in the public sector. Further, public sector licensed workers have an even lower probability of working part‐time. We further examine how licensing differentially affects the wage distribution between the two sectors and find that at the lower wage distribution, licensing's wage associations are almost the same between the public and the private sector. The difference of licensing's wage relationships between the two sectors becomes larger along the upper part of the wage distribution quantiles. Licensing increases the wage premia for private sector workers at the higher wage percentiles, which may make it more difficult for the public sector to attract and retain more highly skilled workers.

CPA exam score and auditors’ salaries

Fair-chance hiring policies aim to expand employment opportunities for individuals with criminal records by reducing legal and systemic barriers to work. These policies include Ban-the-Box, occupational licensing reforms, record-sealing, certificates of rehabilitation, and liability protections. Despite growing adoption, their impact remains difficult to quantify due to limited data. To address this, we (1) introduce standardized metrics to assess the presence and strength of supportive policies, and the extent of legal barriers across all 50 states; and (2) measure employer engagement in fair-chance hiring by analyzing job postings. These metrics enable state-level comparisons, providing data-driven tools to advance the study of fair-chance employment.

We show that occupational licensing has significant negative effects on labor market fluidity defined as cross-occupation mobility. Using a balanced panel of workers constructed from the CPS and SIPP data, we analyze the link between occupational licensing and labor market outcomes. We find that workers with a government-issued occupational license experience churn rates significantly lower than those of non-licensed workers. Specifically, licensed workers are 24% less likely to switch occupations and 3% less likely to become unemployed in the following year. Moreover, occupational licensing represents barriers to entry for both non-employed workers and employed ones. The effect is more prominent for employed workers relative to those entering from nonemployment, because the opportunity cost of acquiring a license is much higher for employed individuals. Lastly, we find that average wage growth is higher for licensed workers than non-licensed workers, whether they stay in the same occupation in the next year or switch occupations. We find significant heterogeneity in the licensing effect across different occupation groups. These results hold across various data sources, time spans, and indicators of being licensed. Overall, licensing could account for almost 8% of the total decline in monthly occupational mobility over the past two decades.

Occupational licensing reform is essential but challenging for state agencies. This paper presents a step-by-step framework for pharmacy licensing boards, inspired by the Idaho State Board of Pharmacy’s (BOP) efforts, which achieved a 75% cut in regulatory page count while creating a more permissive practice environment. By establishing baselines, prioritizing reform areas, and setting clear reduction goals, the BOP streamlined licensing, modernized professional practice standards, and adopted technology-agnostic facility regulations. The transition to enforcement-centric accountability ensured public safety while fostering innovation and economic growth. Early results include increased pharmacy services, improved access, and significant industry investments. This framework offers a replicable approach for other licensing boards to reduce red tape, support economic growth, and enhance regulatory efficiency without compromising health and safety.

Occupational licensing in US public schools: Nationwide implementation of Teacher Performance Assessment

Abstract Among men, the Black-White wage gap is as large today as it was in 1950. We test whether this gap is due to asymmetric information using newly collected data on occupational licensing laws that ban workers with criminal records. We find evidence supporting this hypothesis. The licensing premiums for Black men are largest in licensed occupations that restrict felons, particularly in states with banthe-box laws and at small businesses. In these contexts where a worker’s criminal history is difficult to infer, we find that occupational licensing reduces asymmetric information and reduces the racial wage gap.

Abstract Prior to the Civil War, the US and state governments required the modern licensing of only three occupations, doctors, lawyers, and ship pilots. Most other references to licensing in the 15,000 surveyed antebellum statutes referred to licensing in general terms. Those that referred to the “licensing” of occupations clearly referenced a type of tax or regulation of occupations thought sinful or diplomatically sensitive, like Indian trading and privateering. In other words, the presumption of occupational freedom that developed in medieval and early modern Britain transferred to the colonies and the United States. Only with the rise of Progressivism did modern occupational licensing become common, thus adding weight to economic critiques of the current system.

We present new data on regulatory restrictions across states and occupations between 2017 and 2022 to study the labor market effects of occupational licensing. First, we document three stylized facts: (a) regulatory restrictions across states and occupations have grown by nearly a factor of three since 2019, (b) increases in regulatory restrictions are concentrated in occupations with lower median hourly wages and higher within-occupation inequality, and (c) states that expanded regulatory restrictions tend to have lower GOP vote shares. Second, exploiting variation across occupations within the same state-year, we find that a 10% rise in regulatory restrictions leads to a 2% rise in hourly wages, but a 4% decline in employment. Both the employment and wage effects are concentrated in lower wage jobs, as well as among respondents with professional licenses, even after controlling for differences across industry.

ABSTRACTWays of leaving the labor force have been an understudied aspect of labor market outcomes. Labor market institutions such as occupational licensing may influence how individuals transition to retirement. When and how workers transition from career jobs to full retirement may contribute to pre‐ and post‐retirement well‐being. Previous investigations of retirement pathways focused on the patterns and outcomes of retirement transitions, yet the influence of occupational licensing on retirement transition has not been analyzed. In this study, we use the Current Population Survey to investigate how occupational licensing influences American later‐career workers' choice of retirement pathways. Our results show that older licensed workers are less likely to choose to make career transitions but more likely to reduce work hours in transitioning out of the labor force. These results are consistent with the findings that licensed workers receive more benefits in the form of preferable retirement options, suggesting that these workers tend to have higher wages, benefits, and flexibility even toward the end of their careers.