Mario Pagliero is at the Università di Torino and Collegio Carlo Alberto.
Licensing Exam Difficulty and Entry Salaries in the US Market for Lawyers
Article first published online: 27 JUL 2010
© Blackwell Publishing Ltd/London School of Economics 2010
British Journal of Industrial Relations
Volume 48, Issue 4, pages 726–739, December 2010
How to Cite
Pagliero, M. (2010), Licensing Exam Difficulty and Entry Salaries in the US Market for Lawyers. British Journal of Industrial Relations, 48: 726–739. doi: 10.1111/j.1467-8543.2010.00810.x
- Issue published online: 27 JUL 2010
- Article first published online: 27 JUL 2010
- Final version accepted on 18 October 2009.
This article provides evidence of a correlation between licensing exam difficulty and salaries in a regulated profession. Exam difficulty is positively correlated with salaries across states and over time, both at the aggregate and individual state levels. The magnitude of this correlation is substantial: a 1 per cent increase in exam difficulty implies a 1.7 per cent increase in median entry-level salaries. Exam difficulty does not significantly affect the inter-quartile difference in salaries.