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CPA Licensing and Economic Inequality in the Accounting Labor Market
Journal article   Peer reviewed

CPA Licensing and Economic Inequality in the Accounting Labor Market

Ruiting Dai, Curtis M. Hall, Amanda R. Marino and Eric T. Rapley
Accounting horizons, pp 1-18
01 Aug 2026
DOI: https://doi.org/10.2308/HORIZONS-2024-190
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Abstract

CPA licensure diversity and inclusion economic inequality occupational licensing 150-hour rule
The additional education required by the 150-hour rule for CPA licensure disproportionately affected the representation of Black workers in public accounting. Using U.S. Census Bureau data, we investigate other categories within the accounting industry and find that Black representation also declined in nonpublic accounting but increased in other accounting-related positions. Regarding income, Black workers entering the accounting profession are less likely to be in high-paying accounting jobs, as measured by entry-level pay, wage growth, and career compensation, after the 150-hour rule took effect. Further analysis shows that Black workers earn relatively more in public accounting but less overall, including in accounting-related positions, the job field in which their presence has grown. Overall, our findings suggest that increased occupational licensing requirements in public accounting led to a redistribution of Black representation within the accounting industry, with consequent effects on compensation. Data Availability: All data are publicly available from sources identified in the text.

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