Occupational Licensure In The Accounting Profession Effects Of Public Regulation On Accountants Earnings

Abstract

This paper examines the effects of CPA licensure requirements on earnings in the accounting profession. Using micro data from the U.S. Census, we estimate a model of individual earnings in which explicit controls are included for occupational requirements in the accountants state of residence. Two findings are noteworthy. First, states which require additional credit hours beyond the four-year degree appear to be characterized by higher earnings. Second, states which do not have experience requirements are associated with lower earnings. The subject appears fruitful for further research.