The paper presents a new index that measures the degree of regulation for fourteen professions for which enrolment in a professional association is required, in order to highlight the varying degrees of restrictiveness of the regulation along multiple dimensions. It also describes the characteristics of the people employed in these professions and the impact of regulation on their income.
Professions that require enrolment in a professional association represent a significant share of employment, especially of the more highly educated workers, and are characterized by a wage premium of 7 per cent (net of other observable individual characteristics). Incomes are higher for professions with more stringent regulation. The persistence of rents, the ineffective selection process in some professions and the need to take into account structural changes in the service market suggest that the quality of regulation could improve in some areas.
Published in: Mercato Concorrenza Regole, v. 23, 3, pp. 611-639
