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Abstract

This study examines the effect of state occupational licensing regulations on property crime. A cross- sectional state-level analysis demonstrates a positive relationship between occupational licensing requirements and property-crime rates. Cross-sectional results also reveal a negative relationship between occupational licensing requirements and labor-force participation rates. Two-stage least squares estimates suggests that licensing requirements increase property-crime rates through its effect on the labor-force participation rate. The youth particularly suffers from the negative consequences of licensing burdens. High licensing burdens and other labor market regulations creates barriers to employment opportunities and can lead to idle hands. This disenfranchisement can provide individuals with a motive and opportunity to commit crime.

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