Dispelling Three Myths About Occupational Licensing

Myth: All licensing is necessary to protect public safety. Proponents often argue that the dramatic growth in occupational licensing is necessary to ensure consumer safety. However, the body of available evidence does not support this argument, and instead, often points to the contrary…
Myth: Licensing protects quality. Not only does licensure fail to improve safety, but it also fails to improve quality. Research has found there to be no discernable difference in the quality of floral arrangements from florists in Louisiana—the only state that licenses florists—and Texas. Data showing that complaint rates for floral services in Louisiana were similar to those of unlicensed services in Mississippi and Arkansas further confirmed this finding…
Myth: Licensing primarily affects higher earners.Traditionally-licensed occupations such as doctors, lawyers, and accountants represent high-income, high-risk jobs. However, the increase in occupations that require licensure has caused other jobs, many of which include low- to moderate-income occupations, to require licenses. Many licenses now apply to entry-level jobs that offer a path to upward mobility.

Jared Meyer and Victoria Eardley

Foundation for Government Accountability

October 15, 2018

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