More stringent occupational licensing is associated with less competition, higher prices, and no increase in demand or consumer satisfaction. Customers often care more about a professional's reviews than the professional's licensing status.
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#occupationallicensing #competition #consumerreviews #professionalism #regulation
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#occupationallicensing #competition #consumerreviews #professionalism #regulation
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Consumer Protection in an Online World: An Analysis of Occupational Licensing
(July 2024) - We study the demand and supply implications of occupational licensing using transaction-level data from a large online platform for home improvement services. We find that demand is more responsive to a professional's reviews than to the professional's…
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