Abstract:
Many professions require successfully completing examinations before allowing individuals to practice. These examinations are often administrated by organizations consisting of individuals currently practicing that profession. Some examples of these organizations are the American Bar Association, the Society of Actuaries and the American Institute of Certified Public Accountants. The public motive behind these examinations is to maintain a high level of competence in order to ensure public confidence. A possible alternative explanation for these examinations is that they erect an entrance barrier which leads to higher incomes for those already practicing these professions. In this paper, I am first going to compare the details and stated purposes of each of these examinations. Next, I am going to study the effects these examinations have on the supply of labor, income levels and other available economic data. Finally, I will examine how such economic variables are affected by the differential structures of these entrance examinations.
