Omar Bamieh (University of Vienna)
4 December 2024 @ 12:00 - 13:00
- Past event
Estimating the Returns to Occupational Licensing: Evidence from Regression Discontinuities at the Bar Exam
Abstract: We estimate the returns to occupational licensing for lawyers. To enter the legal profession, lawyers must pass an exam (the bar) featuring sharp discontinuities in passing grades. Focusing on Italian law graduates taking the bar, we exploit these discontinuities to compare individuals who marginally pass and fail the exam and compare their earnings up to 23 years after their first attempt. Law graduates holding a license to practice law—and thus working as lawyers—earn 50% more than law graduates without the license, who are employed in different occupations. These returns persist throughout their careers and are driven by lawyers at the top of the earnings distribution.