Occupational licensing by state governments has spread dramatically in recent decades. Today, around 25 percent of American workers need a state license to do their job—up from 10 percent in 1970. Over 1,000 different occupations are now regulated in one state or another. Although these regulations are justified in the name of protecting consumers’ health and safety, the evidence that licensing improves consumer welfare is weak. By contrast, there is extensive evidence that licensing is a great deal for incumbent service providers, boosting their incomes by making it harder for potential competitors to enter the market. This barrier to entry discourages innovation, exacerbates income inequality at the high and low ends, and undermines geographic mobility.
Blog posts about Occupational Licensing
This Week in Occupational Licensing, April 8th
News and Commentary An Arkansas Senate press release details legislation giving nurse practitioners full scope of practice. Paul Hsieh calls for licensing reform [...]
This Week in Occupational Licensing, April 1st
News and Commentary Karen Jowers reports for Military Times that the DOD has approved grant funding for license portability interstate compacts in five [...]
This Week in Occupational Licensing, March 25th
News and Commentary Kihwan Bae and Edward Timmons present their research on the connection between student loans and occupational licensing in The Hill, [...]
This Week in Occupational Licensing, March 18th
News and Commentary A Civios podcast featuring Morris Kleiner reviews licensing issues and changes during the pandemic. Guam has assented to the Nurse [...]
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