Incidence of Strict Quality Standards: Protection of Consumers or Windfall for Professionals?

Arbeitspapier

This paper examines the effects of upgrading product quality standards on product and professional labor-market equilibriums when both markets are regulated. The Japanese government revised the Building Standards Act in June 2007, requiring a stricter review process for admitting the plans of large-scale buildings. This regulatory change increased the wage of certified architects in Tokyo by 30% but did not increase their total hours worked because of an inelastic labor supply. The stricter quality standards created a quasi-rent for certified architects and owners of condominiums at a cost to consumers. Evidence suggests that the stricter quality standards increased the transaction price of used condominiums by 15% in the Tokyo metropolitan area.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 7443

Classification and Topics

• Classification: Wirtschaft ; Professional Labor Markets; Occupational Licensing
• Subject: labor market of professionals ; product standard ; safety regulation ; incidence of government regulation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kawaguchi, Daiji ; Murao, Tetsushi ; Kambayashi, Ryo
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/80704
• Last update: 10.03.2025, 11:42 AM CET