Occupational licensingand minority participation in professional labor markets

Sutherland, Andrew G. ; Uckert, Matthias ; Vetter, Felix W.

DOI:	https://doi.org/10.1111/1475-679X.12518
URL:	https://onlinelibrary.wiley.com/doi/10.1111/1475-6...
Weitere URL:	https://www.researchgate.net/publication/376461182...
Dokumenttyp:	Zeitschriftenartikel
Erscheinungsjahr:	2024
Titel einer Zeitschrift oder einer Reihe:	Journal of Accounting Research
Band/Volume:	62
Heft/Issue:	2
Seitenbereich:	453-503
Ort der Veröffentlichung:	Hoboken, NJ
Verlag:	Wiley Blackwell
ISSN:	0021-8456 , 1475-679X
Sprache der Veröffentlichung:	Englisch
Einrichtung:	Fakultät für Betriebswirtschaftslehre > Accounting & Taxation (Juniorprofessur) (Vetter 2020-)
Fachgebiet:	330 Wirtschaft
Fachklassifikation:	JEL: J24 , J44 , K2 , L51 , M40 , M41 , M42,
Freie Schlagwörter (Englisch):	occupational licensing , labor markets , CPAs , diversity and inclusion , regulatory capture , accounting quality
Abstract:	We examinethe staggered adoption of additional educationalrequirements (“150-hour rule”) for Certified Professional Accountants (“CPAs”)to understand the effects of occupational licensing on minority participation in professional labor markets. The 150-hour ruleincreased the educationalrequirement for CPAs from 120 to 150 credit hours, effectively adding a fifth year of study. We find a 13% greater entry decline following the requirement’s enactment for minority than nonminority CPAcandidates. Our analyses of parental income and financial aid availability point to a socio-economic status channel explaining the differential entry declines. Studying exam passing patterns,professional misconduct, and job postings we find a deterioration, or at best, no change in CPAquality following enactment.