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Barrier to Entry or Signal of Quality? The Effects of Occupational Licensing on Minority Dental Assistants
Labour Economics ( IF 2.2 ) Pub Date : 2021-06-27 , DOI: 10.1016/j.labeco.2021.102027
Xing Xia

Economic theory suggests that occupational licensing can be a barrier to entry that restricts labor supply (Friedman, 1962; Stigler, 1971) or a signal of quality that enhances the labor market (Leland, 1979). This paper studies two types of licenses for dental assistants (DAs) in the U.S. to illustrate the competing supply-restricting and quality-signaling effects of licensing on minority workers. Specifically, I study the effects of introducing the X-ray permit, a state-issued license to perform X-ray procedures that also carries information about a DA’ s competence, against that of the entry-level license, which provides little information about a DA’ s competence. I find that the X-ray permit requirement reduces the wage gap between non-Hispanic white and minority DAs by 8 percent, presumably because it helps minority DAs secure jobs that entail X-ray procedures. In contrast, entry-level licensing does not reduce the racial wage gap. These findings suggest that licensing alleviates statistical discrimination if it reveals information about the holder’ s productivity.



中文翻译:

进入壁垒或质量信号?职业执照对少数牙医助理的影响

经济理论表明,职业许可可以成为限制劳动力供应的进入壁垒(Friedman,1962;Stigler,1971)或提高劳动力市场的质量信号(Leland,1979)。本文研究了美国牙医助理 (DA) 的两种类型的许可证,以说明许可证对少数族裔工人的竞争性供应限制和质量信号影响。具体来说,我研究了引入 X 射线许可证的影响,这是一种国家颁发的 X 射线程序许可证,其中也包含有关 DA 能力的信息,与入门级许可证的影响相比,入门级许可证提供的信息很少DA 的能力。我发现 X 光许可证要求将非西班牙裔白人和少数族裔 DA 之间的工资差距缩小了 8%,大概是因为它帮助少数族裔 DA 获得需要 X 射线程序的工作。相比之下,入门级执照并没有减少种族工资差距。这些发现表明,如果许可揭示了有关持有者生产力的信息,则它可以减轻统计歧视。

更新日期:2021-07-07
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