Abstract
This study develops and estimates a model of real estate agent demand and supply. The estimates of the model show that the licensing examination pass rate and the educational requirements set by state licensing boards affect the numbers and incomes of real estate agents. The study further shows that the demand for agents is related to economic activity in the housing market and that the supply of agents is very elastic with respect to agent earnings.
Similar content being viewed by others
References
American Chamber of Commerce Research Association (ACCRA). (1989). Cost of Living Index.
Benham, L., A. Maurizi, and M. W. Reder. (1968). "Migration, Location, and Remuneration of Medical Personnel: Physicians and Dentists," Review of Economics and Statistics 50(3), 332–347.
Bureau of the Census. (1994). Census of Population and Housing, 1990. Subject Summary Tape File 22, Earnings by Occupation and Education. Washington, DC: U.S. Government Printing Office.
Carroll, S. L., and R. J. Gaston. (1979). "State Licensing Provisions and Quality of Service: The Real Estate Business," Research in Law and Economics 1, 1–13.
Crellin, G. E., J. R. Frew, and G. D. Jud. (1988). "The Earnings of Realtors: Some Empirical Evidence," Journal of Real Estate Research 3(2), 69–78.
Friedman, M., and S. Kuznets. (1945). Income from Independent Professional Practice. New York: National Bureau of Economic Research.
Glower, M., and P. H. Hendershott. (1988). "The Determinants of REALTOR Income," Journal of Real Estate Research 3(2), 53–68.
Guntermann, K. L., and R. L. Smith. (1988). "Licensing Requirements, Enforcement Effort and Complaints Against Real Estate Agents," Journal of Real Estate Research 3(2), 11–20.
Johnson, L. L., and C. Loucks. (1986). "The Effect of State Licensing Regulations on the Real Estate Brokerage Industry," AREUEA Journal 14(4), 567–582.
Johnson, R. A., and D. W. Wichern. (1982). Applied Multivariate Statistical Analysis. Englewood Cliffs, NJ: Prentice-Hall.
Jud, G. D., and D. T. Winkler. (1998). "The Earnings of Real Estate Salespersons and Others in the Financial Services Industry," Journal of Real Estate Finance and Economics 17(3), 279–291.
Kleiner, M. M., and R. T. Kudrle. (1997). Does Regulation Improve Outlets and Increase Prices? Working Paper 5869, National Bureau of Economic Research.
Maurizi, A. (1994). "Occupational Licensing and the Public Interest," Journal of Political Economy 82(2), 399–413.
National Association of Real Estate License Law Officials. (1988). 1988 Digest of Real Estate License Laws. Centerville, UT: NARELLO.
Rose, J. (1979). "Occupational Licensing: A Framework for Analysis," Arizona State Law Journal 1979(1), 189–202.
Shilling, J. D., and C. F. Sirmans. (1988). "The Effects of Occupational Licensing on Complaints Against Real Estate Agents," Journal of Real Estate Research 3(2), 1–10.
Sirmans, G. S., and P. Swicegood (1997). "Determinants of Real Estate Licensee Income," Journal of Real Estate Research 14(2), 137–153.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Jud, G.D., Winkler, D.T. A Note on Licensing and the Market for Real Estate Agents. The Journal of Real Estate Finance and Economics 21, 175–184 (2000). https://doi.org/10.1023/A:1007844010486
Issue Date:
DOI: https://doi.org/10.1023/A:1007844010486