California contractors licensing schools: A study of occupational licensure and training

Construction contracting has historically been an important avenue for economic advancement. California's construction industry continues to offer this opportunity, but licensing requirements now pose a serious barrier to those seeking to enter. Licensing schools, organizations run for the private benefit of their owners, have responded to the individual needs created by licensing by offering programs to help individuals to get a license. The purposes of this study are to describe this group of licensing schools and the applicants who attend them, and to measure the relationship between attending a school and the applicant's examination performance and success in the licensing process. The study is divided into three phases. Phase I uses document analysis to gather background data on the schools. In Phase II, 1600 applicants for contractors licenses are surveyed for information on exam preparation and demographic variables. Data from the survey are matched with the applicants' examination scores and application rejection rates. Chi Square analysis is used to compare school attenders with non-attenders on 13 background characteristics. Multiple regression analysis is used to determine the relationship between school attendance and examination score. In Phase III, observations and interviews are conducted at three selected field sites to gain a detailed understanding of how the schools operate. The results show that school attenders tend to be younger and have less education and lower incomes than non-attenders. School attenders are more likely to have English as a second language, to be non-citizens, and to have an immediate need for a license. Attending a licensing school is positively associated with examination scores. Schools were found to be tightly linked to licensing board policy and to be highly competitive with each other.