The Cost of Hair-Styling Regulation: Estimates

Abstract

Regulations whose effect, if not intent, is to restrict entry in the hair-styling professions are often pointed out as an example of a silly or self-serving regulation. Oddly, little work investigates the actual cost to consumers due to the entry restriction. This paper estimates the cost of a particular aspect of the regulation -- the number of hours of required schooling before one can sit for the barbering or cosmetology examination. The estimates suggest that the haircut suffered by consumers is too small to be worth taking any policy action -- less than a dollar per year per capita. Nevertheless, the estimates are statistically significant and provide a vivid illustration of the "capture" hypothesis of regulation in action.

JEL Classification: L51, L84