Page "Milton Friedman" Paragraph 12

During 1935, he began work for the National Resources Committee, which was then working on a large consumer budget survey.

Ideas from this project later became a part of his Theory of the Consumption Function.

Friedman began employment with the National Bureau of Economic Research during autumn 1937 to assist Simon Kuznets in his work on professional income.

This work resulted in their jointly authored publication Incomes from Independent Professional Practice, which introduced the concepts of permanent and transitory income, a major component of the Permanent Income Hypothesis that Friedman worked out in greater detail in the 1950s.

The book hypothesizes that professional licensing artificially restricts the supply of services and raises prices.