Understanding the Data on Occupational Licensing

The [Current Population Survey] data augment knowledge of the extent and patterns of licensure, complementing previous efforts at measurement. The most commonly cited previous metrics of occupational licensure are the Institute for Justice’s 2012 “License to Work” study and a 2013 Harris Poll survey. While each of these two has its strengths, the new data offer a larger sample size and the ability to connect licensure to other economic and demographic characteristics in the CPS.
As economists work to better measure the extent and effect of licensure, state legislators should begin reviewing and reforming their licensure regulations in order to make them consistent with the public good. Currently, licensure boards are largely unaccountable, and usually dominated by industry insiders whose interests are at odds with those of customers. In each occupation, legislators should replace this system with the least intrusive form of occupational regulation consistent with public safety.

Salim Furth

The Heritage Foundation

September 28, 2016

External Link