Occupational Licensing and Minority Participation in Professional Labor Markets

• DOI: 10.1111/1475-679x.12518
• Publication Date: 2023-12-13T02:11:58Z
• Authors: ANDREW G. SUTHERLAND; MATTHIAS UCKERT; FELIX W. VETTER
• Keywords: Occupational Licensing

ABSTRACT We examine the staggered adoption of additional educational requirements (“150‐hour rule”) for Certified Public Accountants (“CPAs”) to understand effects occupational licensing on minority participation in professional labor markets. The 150‐hour rule increased requirement CPAs from 120 150 credit hours, effectively adding a fifth year study. find 13% greater entry decline following requirement's enactment than nonminority CPA candidates. Our analyses parental income and financial aid availability point socioeconomic status channel explaining differential declines. Studying exam passing patterns, misconduct, job postings we deterioration, or at best, no change quality enactment.