OCCUPATIONAL LICENSE LAWS AND THE CREATION OF EDUCATIONAL NEEDS: A NEW ROLE FOR COMMUNITY COLLEGES?

The authors describe how growing state occupational license laws that require candidates to pass pencil and paper examinations create a large demand for education. In building contracting, insurance, and real estate, for example, that demand often is met by profit‐seeking examination preparation schools. The paper reports research from a large sample of applicants of the more than 20,000 each year who take the California contractors’ license examination. Some prepared for the examination, which is primarily business and law, through examination preparation schools, while others prepared on their own. Results show that while those who attended a license‐preparation school were somewhat less advantaged than those who prepared on their own, they had a somewhat higher probability of passing the examination. The paper also reports, however, that a large minority of license candidates were dissatisfied with their method of preparation, often expressing a need for a more comprehensive educational program in business and law, rather than in rote drill offered by many license schools. Added evidence is presented suggesting the need for more thorough preparation of license candidates that could result in greater social equity, indicating an important role for public community colleges in meeting this emergent demand.