DOCSLIB.ORG

Regulating Occupations: Quality Or Monopoly?

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Regulating Occupations: Quality Or Monopoly? Employment Research Newsletter Volume 13 Number 1 Article 1 1-1-2006 Regulating Occupations: Quality or Monopoly? Morris M. Kleiner University of Minnesota-Twin Cities Follow this and additional works at: https://research.upjohn.org/empl_research Part of the Labor Economics Commons Citation Kleiner, Morris M. 2006. "Regulating Occupations: Quality or Monopoly?" Employment Research 13(1): [1]–3. https://doi.org/10.17848/1075-8445.13(1)-1 This title is brought to you by the Upjohn Institute. For more information, please contact [email protected]. JANUARY 2006 Morris M. Kleiner Morris M. Kleiner Regulating Occupations: Regulating Occupations: Quality or Monopoly? Quality or Monopoly? u This article highlights some of the findings in moral character,” and a test. A second, John S. Earle the author’s new book, Licensing Occupations: less restrictive form of regulation is Employment and Wage Effects Ensuring Quality or Restricting Competition? certification, which gives states a “right- of Privatization: Evidence from which is available from the Upjohn Institute to-title” protection for persons meeting Transition Economies (see p. 7). predetermined standards. Those without certification may perform the duties u The licensing of occupations often of the occupation but may not use the is accused of being stealth regulation title. A third and least restrictive form of that operates under the public policy New Books radar screen. Unlike other labor market Figure 1 Comparisons in the Trends institutions, such as laws regulating of Two Labor Market Institutions: unions or the minimum wage, the Licensing and Unionization regulation of occupations has received little attention by the press, academics, 40 Vol. 13, No. 1 or policymakers. However, this lack of attention is not because occupational Union Employment Research is published 30 Licensed quarterly by the W.E. Upjohn Institute for licensing is diminishing in the labor Employment Research. Issues appear in market. Figure 1 shows that the growth t January, April, July, and October. of occupational licensing in the United en rc 20 States has increased far more than unions, Pe The Institute is a nonprofit research organization devoted to finding and a more widely studied labor market promoting solutions to employment-related institution. Since the 1950s, licensing 10 problems at the national, state, and local coverage has grown from about 5 percent level. The Institute is an activity of the W.E. of the workforce to more than 20 percent, Upjohn Unemployment Trustee Corporation, 0 which was established in 1932 to administer while unions have declined from about a fund set aside by Dr. W.E. Upjohn, founder a third of the workforce to less than 13 1950s 1970s 1990s 2004 of the Upjohn Company, to conduct research percent, and to fewer than 8 percent in on the causes and effects of unemployment the private sector. Approximately 50 SOURCE: Tabulations for licensing coverage and seek measures for the alleviation of the for the 1950s are from the Council of State hardships suffered by the unemployed. occupations are licensed in all states, Governments (1952), which lists licensed and about 800 occupations are similarly occupations in the public use Census Sample W.E. Upjohn Institute regulated in at least one state. for 1950. For the 1960s, the tabulations are 300 S. Westnedge Avenue Occupational regulation has varying from Greene (1969), which links the available Kalamazoo, MI 49007-4686 (269) 343-5541 levels of stringency. The toughest form of listing of licensed occupations to census www.upjohninstitute.org regulation is licensure, where it is illegal tabulations. The data for the 1980s are from for a person to practice a profession Kleiner (1990) tabulations; new estimates Randall W. Eberts without first meeting state standards, were developed for 2000. Estimates for Executive Director which usually involve detailed education union density are from the Bureau of Labor Statistics (1979) and Hirsch and Macpherson requirements, testimonials of “good (2005). ISSN 1075–8445 Employment Research JANUARY 2006 regulation is registration, which usually Table 1 Key Findings of the Impact of Licensing on Enhancing Quality or requires individuals to file their names, Restricting Competition addresses, and qualifications with a Issue Key findings government agency before practicing Estimate of percent Using Department of Labor and Census Data, percent of workforce in the occupation. Registration often of workforce covered covered by licensing is approximately 20 percent, a growth of 11 percent includes posting a bond or filing a fee. by licensing over the past 15 years. Although the regulation of individuals Potential benefits of Increased standardization of services and reduction in the potential in occupations dates to ancient times, the licensing “loss aversion” by consumers due to poor quality service. guilds of medieval Europe are most often mentioned as examples of the imposition Evidence of the Some evidence that the insured and higher-income gain from stricter benefits of licensing licensing but no measurable impact on overall quality. of tough restrictions on entering a craft or occupation. In the United States through Price and wage Licensing drives up prices, and the overall wage effect relative to much of the nineteenth century, few effects of licensing unlicensed occupations in cross-section data is 10–12 percent, but restrictions were imposed on occupations impacts differ widely based on methods, occupations, and toughness of restrictions. we often think of as licensed, such as doctors and lawyers. During the past Licensing and Within an occupation, the percentage employment growth rate is 50 years, however, with the increase employment growth approximately 20 percent greater in states that do not require licensing, in complexity of jobs, especially in the but impacts differ widely based on the methods and occupations. service sector, licensing of individuals in State variations in Much variation in the number of occupations licensed by states and the their jobs emerged as one of the fastest- licensing percent of the workforce covered by licensing laws. Case studies show growing labor market institutions in the that political spending by the occupational associations is an important United States and other industrialized factor for who gets regulated. nations. Redistribution and Estimated redistribution effects to regulated occupations of between One of the major justifications for lost output due to $116 billion and $139 billion in 2000 dollars, and lost output of $34.8 occupational licensing is that it increases licensing and $41.7 billion per year, which is less than 0.1 percent of total consumption expenditures. service quality. Yet the available studies offer little evidence that licensing U.S. and EU Both economies regulate entry but there is often no exam beyond individuals has an impact on the quality comparisons university or trade school to obtain a license for many of the professions of service received by consumers. For in the EU. EU nations regulate prices charged and the organizational structure of the professions to a greater extent than the United States. example, my examination of data from Wage effects for licensing are around 1 percent using cross-section Wisconsin and Minnesota finds no estimates, but the impacts vary widely based on methods, occupations, evidence of differences in consumer and toughness of restrictions. complaints between Wisconsin, which licensed certain health care occupations, in insurance premiums were given to workforce that is covered by licensing such as physical therapists, respiratory practitioners in licensed states. laws. For example, California licenses care providers, and physician assistants, Then what are the potential impacts almost 180 occupations that cover more and complaints to state boards in of licensing? Restricting labor supply is than 30 percent of its workforce. On Minnesota, which certified the same one. For example, there was a decline the other hand, Kansas licenses about occupations. in employment growth for librarians, 50 occupations, and these regulatory Malpractice insurance premiums respiratory therapists, and dietitians and laws cover less than 12 percent of can also serve as the arbitrator of the nutritionists from 1990 to 2000 in those its workforce. If licensing has no effectiveness of licensing as a way to states that regulate these occupations productivity impacts yet increases mitigate the harmful effects of inept relative those that do not. The estimates spending, then simulations of the net practitioners. If licensing works as using census data show that, for the expenses of the labor market regulation intended, it should reduce mistakes licensed occupations that were regulated indicate it costs the economy about $38 by licensed relative to unlicensed in about one-half of all states, licensing billion in lost service output per year. practitioners. The insurance industry reduced the percentage growth rate of The regulation of occupations in would then provide lower premiums employment by a statistically significant Europe takes a somewhat different form for practitioners in regulated states 20 percent. Therefore, it is not surprising from that in the United States. Rather because licensing statutes (such as testing that the impact of licensing on hourly than focusing on postgraduation tests, and background checks) would have earnings compared to similar unlicensed countries such as France, Germany, and
Load more

Recommended publications
  • Occupational Licensing and the Limits of Public Choice Theory
    University of Pennsylvania Carey Law School Penn Law: Legal Scholarship Repository Faculty Scholarship at Penn Law 4-18-2019 Occupational Licensing and the Limits of Public Choice Theory Gabriel Scheffler University of Pennsylvania Carey Law School, Yale Law School Ryan Nunn Brookings Institution, Hamilton Project Follow this and additional works at: https://scholarship.law.upenn.edu/faculty_scholarship Part of the Administrative Law Commons, Antitrust and Trade Regulation Commons, Constitutional Law Commons, Consumer Protection Law Commons, Economics Commons, Law and Economics Commons, and the Public Law and Legal Theory Commons Repository Citation Scheffler, Gabriel and Nunn, Ryan, "Occupational Licensing and the Limits of Public Choice Theory" (2019). Faculty Scholarship at Penn Law. 2072. https://scholarship.law.upenn.edu/faculty_scholarship/2072 This Article is brought to you for free and open access by Penn Law: Legal Scholarship Repository. It has been accepted for inclusion in Faculty Scholarship at Penn Law by an authorized administrator of Penn Law: Legal Scholarship Repository. For more information, please contact [email protected]. OCCUPATIONAL LICENSING AND THE LIMITS OF PUBLIC CHOICE THEORY RYAN NUNN* & GABRIEL SCHEFFLER** ABSTRACT Public choice theory has long been the dominant lens through which economists and other scholars have viewed occupational li- censing. According to the public choice account, practitioners favor licensing because they want to reduce competition and drive up their own wages. This essay argues that the public choice account has been overstated, and that it ironically has served to distract from some of the most important harms of licensing, as well as from po- tential solutions. We emphasize three specific drawbacks of this ac- count.
    [Show full text]
  • Varieties of (Regulatory) Capitalism: Occupational Licensing in the UK
    Varieties of (regulatory) capitalism: Occupational licensing in the UK, Israel, Germany and Sweden *Draft – please do not circulate without author's permission **All feedback is welcome Yair Osheroff1, David Levi-Faur 4th ICPP, panel: Public policy and the policy state, June, 2019 Abstract Since the introduction of the concept of Varieties of Capitalism (henceforth: VoC) (Sosckie and Hall, 2001), theoretical and empirical work had discussed it in different contexts and with regard to specific issues in political economy. This study examines Occupational Licensing (OL) by using the framework VoC suggests. While explanations of OL sought mainly in the microeconomic aspects of the phenomenon, its macroeconomic aspects and institutional settings were left underexplored. This study addresses this caveat, and aim to understand OL in light of VoC. For that aim we conduct a comparative research of UK, Israel, Germany and Sweden – four countries that differ in the number of OL regimes under their jurisdiction and in their restrictiveness. By comparing institutions of political economy of the states, this work examines what factors in the level of the state explain the differences in the degree of OL between UK, Israel, Germany and Sweden. According to the framework of VoC, we focus on three key factors that complement and correlate with OL: vocational education, labor unions, and privatization. The study is expected to advance the understanding of the broader context of the political economy of OL. Moreover, it would contribute to the scope and comprehension of the concept of VoC. In particular it would shed light on the place of OL as an institution within the broad institutional settings of political economy.
    [Show full text]
  • Occupational Licensing and American Workers
    1 OCCUPATIONAL LICENSING AND AMERICAN WORKERS By Ryan Nunn Access to jobs is vital to economic opportunity. A fair and well-functioning labor market provides that access, allowing the widest possible scope for individuals to exercise their talents and support their families. Our labor market institutions, which include occupational licensing, unemployment insurance, and unions, among many others, structure workers’ experiences in ways that demand careful analysis. Are these institutions helping workers to make the most of their economic opportunities? This economic analysis focuses on the role of occupational licensing—that is, the legal permission that many workers must obtain before working in professions ranging from law and medicine to, in some states, floral arrangement and landscaping. According to the Bureau of Labor Statistics (BLS), nearly a quarter of all employed U.S. workers reported having a license in 2015. As the prevalence of licensing has grown from around 5 percent (in the 1950s) to about a quarter of employees today, licensing has become a central labor market institution that shapes employment opportunities for many workers. A growing body of research suggests that licensing has pervasive impacts on workers’ wages and employment as well as prices faced by consumers. In June 2016, the Council of Economic Advisers produced a valuable report using the new survey data on occupational licenses and certificates. This report accompanied a summary of the Obama Administration’s progress in encouraging occupational licensing reform. The efforts detailed there suggest that substantial progress has been made in supporting state-level legislation that makes it harder to deny licenses to people with irrelevant criminal records, funding at the Department of Labor for the encouragement of license portability, and comprehensively assessing state-level licensure rules.
    [Show full text]
  • The Multiple Justifications of Occupational Licensing, 93 Wash
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by UW Law Digital Commons (University of Washington) Washington Law Review Volume 93 | Issue 4 12-1-2018 The ultM iple Justifications of Occupational Licensing Nick Robinson Follow this and additional works at: https://digitalcommons.law.uw.edu/wlr Part of the Labor and Employment Law Commons Recommended Citation Nick Robinson, The Multiple Justifications of Occupational Licensing, 93 Wash. L. Rev. 1903 (2018). Available at: https://digitalcommons.law.uw.edu/wlr/vol93/iss4/7 This Article is brought to you for free and open access by the Law Reviews and Journals at UW Law Digital Commons. It has been accepted for inclusion in Washington Law Review by an authorized editor of UW Law Digital Commons. For more information, please contact [email protected]. 13 - Robinson (3).docx (Do Not Delete) 1/6/2019 12:40 PM THE MULTIPLE JUSTIFICATIONS OF OCCUPATIONAL LICENSING Nick Robinson* Abstract: Nearly a quarter of all workers in the United States are currently in a job that requires an occupational license. As the prevalence of occupational licensing has grown, so have claims that its overuse is causing increased consumer costs and impairing labor mobility and economic freedom. To address these concerns, many policymakers and academics argue that licensing restrictions should be more closely tailored to the goal of protecting the public from harm and that, to guard against capture, practitioners should not regulate their own licensing. Federal courts, in turn, have drawn on this vision of the proper role of occupational licensing to significantly limit when and how licensing can be used through their interpretation of antitrust law and the First and Fourteenth Amendments of the Constitution.
    [Show full text]
  • A Welfare Analysis of Occupational Licensing in U.S. States
    NBER WORKING PAPER SERIES A WELFARE ANALYSIS OF OCCUPATIONAL LICENSING IN U.S. STATES Morris M. Kleiner Evan J. Soltas Working Paper 26383 http://www.nber.org/papers/w26383 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 October 2019 For helpful feedback, we thank Daron Acemoglu, Abi Adams, David Autor, Alex Bryson, Peter Blair, Ashley Craig, Amy Finkelstein, Jon Gruber, Alan Krueger, Brad Larsen, Jim Poterba, Ferdinand Rauch, Alex Tabarrok, Owen Zidar, and conference and seminar participants at APPAM, ASSA, LERA, MIT, SITE, YES-NYU, and the Upjohn Institute for Employment Research. This paper previously circulated under the title "Occupational Licensing, Labor Supply, and Human Capital." Soltas gratefully acknowledges support from the National Science Foundation Graduate Research Fellowship under Grant No. 1122374. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2019 by Morris M. Kleiner and Evan J. Soltas. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. A Welfare Analysis of Occupational Licensing in U.S. States Morris M. Kleiner and Evan J. Soltas NBER Working Paper No. 26383 October 2019 JEL No. H0,J44,J78,K0 ABSTRACT We assess the welfare consequences of occupational licensing for workers and consumers. We estimate a model of labor market equilibrium in which licensing restricts labor supply but also affects labor demand via worker quality and selection.
    [Show full text]
  • Occupational Licensing and Job Mobility in the United States
    OECD Economics Department Working Papers No. 1585 Occupational licensing and job mobility Mikkel Hermansen in the United States https://dx.doi.org/10.1787/4cc19056-en Organisation for Economic Co-operation and Development ECO/WKP(2019)55 Unclassified English - Or. English 12 December 2019 ECONOMICS DEPARTMENT OCCUPATIONAL LICENSING AND JOB MOBILITY IN THE UNITED STATES ECONOMICS DEPARTMENT WORKING PAPERS No. 1585 By Mikkel Hermansen OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). Authorised for publication by Isabell Koske, Deputy Director, Country Studies Branch, Economics Department Document available in pdf format only. All Economics Department Working Papers are available at www.oecd.org/eco/workingpapers. JT03456039 OFDE This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2 ECO/WKP(2019)55 OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works. Comments on Working Papers are welcomed, and may be sent to the Economics Department, OECD, 2 rue André-Pascal, 75775 Paris Cedex 16, France, or by e-mail to [email protected].
    [Show full text]
  • Occupational Licensing Literature and State Policy Scan
    OCCUPATIONAL LICENSING LITERATURE AND STATE POLICY SCAN I. INTRODUCTION Occupational licensing has grown dramatically over the years, leading to a larger share of American workers who need a license to perform their work. Accounting for just five percent of the employed population in the 1950’s, licensed workers now comprise more than 25 percent of all employed Americans.1 Spurred by concerns for public safety, consumer protection or other policy goals, the growth in state licensing over time has created a patchwork of different requirements across states, making it difficult for workers to move their skills across state lines, and costly for them to work in a licensed profession. “When designed and implemented carefully, licensing can benefit consumers through higher quality services and improved health and safety standards,” found the 2016 “Occupational Licensing: Framework for Policymakers” report from the U.S. Council of Economic Advisers, and Departments of Labor and Treasury, which further noted that current licensure rules impose burdens on workers, employers, and consumers, and “too often are inconsistent, inefficient, and arbitrary.”2 State policymakers play an important role in setting licensure policy and are at the heart of many efforts to strike the right balance needed to protect consumers and promote economic growth and employment opportunity. As described in this report, policymakers are enacting a wide range of strategies to calibrate their regulations to meet the needs of today’s consumers, workers, employers and job markets. Occupational licensing research offers important lessons about the effects, costs and benefits of licensing policies, as well as best practices and tools for designing a smart regulatory approach.
    [Show full text]
  • Options to Enhance Occupational License Portability
    Policy Perspectives Options to Enhance Occupational License Portability Federal Trade Commission September 2018 Joseph J. Simons Chairman Maureen K. Ohlhausen Commissioner Noah Joshua Phillips Commissioner Rohit Chopra Commissioner Rebecca Kelly Slaughter Commissioner ________________________________________________ This policy paper represents the views of the FTC staff, and does not necessarily represent the views of the Commission or any individual Commissioner. The Commission has voted to authorize the staff to issue this policy paper. ________________________________________________ ii Bilal Sayyed, Director, Office of Policy Planning Tara Isa Koslov, Former Acting Director, Office of Policy Planning Chief of Staff, Office of the Chairman Karen A. Goldman, Office of Policy Planning This Policy Perspective was developed under the auspices of the FTC’s Economic Liberty Task Force, convened by former Acting Chairman Maureen K. Ohlhausen.1 Inquiries concerning this Policy Perspective should be directed to Karen A. Goldman, Office of Policy Planning, at (202) 326-2574 or [email protected]. This Policy Perspective is available online at www.ftc.gov/policy/reports/policy-reports/commission-and-staff-reports The online version of this report contains live hyperlinks. 1 See infra p. iv. iii About the Economic Liberty Task Force The Economic Liberty Task Force2 addresses regulatory hurdles to job growth, entrepreneurship, innovation, and competition, with a particular focus on the proliferation of occupational licensing. The Task Force was convened in March 2017 by former Acting Chairman Maureen K. Ohlhausen as her first major policy initiative for the agency. The Task Force builds on the FTC’s long history of urging policymakers to reduce or eliminate unnecessary occupational licensing requirements.
    [Show full text]
  • Occupational Licensing and the Poor and Disadvantaged MATTHEW D
    POLICY SPOTLIGHT Occupational Licensing and the Poor and Disadvantaged MATTHEW D. MITCHELL | SEPTEMBER 2017 Nearly one-third of American workers need government permission to do their jobs.1 Many of these workers earn below-average incomes, and their jobs are an important part of their self-sufficiency and upward economic mobility. For many of these workers, how- ever, onerous licensing requirements stand in their way. While licenses may be intended to prevent poor-quality service or to protect public health and safety, the evidence sug- gests that they do not provide those benefits.2 Occupational licensing raises the cost of goods and services and often hurts those who simply want to find meaningful employment. Licensing is especially harmful to those who are excluded from these licensed professions, inhibiting their ability to improve their lives and support their families. LICENSING RESTRICTS LOW-SKILLED LICENSING RAISES COSTS FOR EMPLOYMENT OPPORTUNITIES CONSUMERS, ESPECIALLY THE POOR By placing barriers to entry on jobs that could other- These licensing requirements raise costs for con- wise be performed by individuals with limited training, sumers. Because many licensed professionals offer licensing often reduces opportunities for the most products or services that are bought by low-income vulnerable workers and those who need these jobs individuals, licensing laws hit the poor twice—once in the most.3 the form of limiting job opportunities and then again in the form of higher prices.4 • In some entry-level occupations like bus driver, truck driver, pest control applicator, and cosme- • State nurse practitioner licensing is estimated to tologist, an occupational license is required in all raise the price of a well-child checkup by 3 to 16 50 states plus the District of Columbia.
    [Show full text]
  • A Primer on Emergency Occupational Licensing Reforms for Combating COVID-19
    POLICY BRIEF SPECIAL EDITION A Primer on Emergency Occupational Licensing Reforms for Combating COVID-19 Ethan Bayne, Conor Norris, and Edward Timmons March 26, 2020 The pandemic of COVID-19 has created a significant strain on the healthcare system in the United States. As of March 26, the Centers for Disease Control and Prevention has confirmed 68,440 cases of the disease and 994 deaths in the United States.1 As COVID-19 continues to spread, these numbers are only expected to increase, and with that so does the potential to overwhelm the US healthcare system. American regulatory policy limits the country’s healthcare capacity in a variety of ways. In response, states must consider a range of temporary measures to allow the supply of healthcare professionals to meet the sudden growing demand and provide adequate care to patients. The existing web of state occupational licensing laws creates rigidity in healthcare labor supply. In this brief we highlight actions states have taken to reform occupational licensing, and we produce a novel ranking of these interventions as guidance to policymakers. Currently, Italy is reporting a surge of infections among healthcare personnel. These infections make up 8.3 percent of the country’s total infections.2 With Italian hospitals overwhelmed from the onslaught of infected patients, the healthcare system is struggling. As Europe’s hardest-hit coun- try, Italy is being forced to relax its own regulatory regime, calling in retired doctors and waiving occupational licensing requirements to treat the overwhelming influx of patients. The situation in the United States may not play out to be as severe as in Italy; however, the problem in Italy shows how deadly a general healthcare staffing shortage can be.
    [Show full text]
  • Dispelling Three Big Myths About Occupational Licensing
    Dispelling three big myths about occupational licensing OCTOBER 12, 2018 Jared Meyer Senior Fellow Victoria Eardley Research Fellow KEY FINDINGS 1 MYTH: REALITY: ALL LICENSING IS LICENSING HAS LITTLE NECESSARY TO EFFECT ON PUBLIC PROTECT PUBLIC SAFETY SAFETY 2 MYTH: REALITY: LICENSING PROTECTS LICENSING CAN QUALITY REDUCE SERVICE QUALITY 3 MYTH: REALITY: LICENSING PRIMARILY LICENSING HARMS AFFECTS HIGHER LOW-INCOME EARNERS INDIVIDUALS BOTTOM LINE: POLICYMAKERS CANNOT ALLOW LICENSING REFORMS TO BE HINDERED BY UNDUE PUBLIC SAFETY AND QUALITY CONCERNS. IT IS TIME POLICYMAKERS GIVE CONSTITUENTS THE FREEDOM TO WORK. Occupational licenses are government-approved requirements that individuals must gain to work in a profession. Most license approvals are contingent upon completing an educational program, passing an exam, and paying a fee. Licensing has not always played a significant role in the American labor market. In the 1950s, fewer than five percent of U.S. workers were required to have a state- issued license to work.1-2 By 2015, however, this number had risen to nearly 30 percent.3 There are now over one thousand occupations licensed at the state level alone, with still more licensed at the federal and municipal levels.4 This number includes high-earning occupations traditionally under licensure, including lawyers, doctors, and accountants. However, it also includes low- to NEARLY 30% medium-income occupations that pose much less of a OF U.S. WORKERS ARE physical or financial risk to the public, including interior REQUIRED TO HAVE A designers, animal massage therapists, and florists. STATE-ISSUED LICENSE The astronomical growth in licensing has been spurred IN ORDER TO WORK.
    [Show full text]
  • The Effects of Occupational Licensing on Wages and Employment
    Waiting to Work: The Effects of Occupational Licensing on Wages and Employment By Mark Gius, Ph.D. NOVEMBER 2016 CONNECTICUT CAN Waiting to Work: The Effects of Occupational Licensing on Wages and Employment About The Author: Mark Gius, Ph.D. is a Professor of Economics at Quinnipiac University in Hamden, Connecticut. He earned his Ph.D. in Economics from the Pennsylvania State University. His teaching interests are labor economics, law and economics, and industrial organization. His main area of research interest is applied microeconomics with an emphasis on public policy research. His research has appeared in Applied Economics, Applied Economic Letters, and the Social Science Journal. 2 | Connecticut Can Work! | November 2016 www.ConnecticutCanWork.org Letter from The Yankee Institute It is time for lawmakers to rethink Connecticut’s burdensome regulatory system. Because Connecticut has so many regulations, reform will help spur the state’s struggling economy, and open the way for the private Since 1990, sector to create more and better jobs. Connecticut has Since 1990, Connecticut has added the fewest jobs of any state in the nation. The state continues to lag behind the nation in per capita income added the fewest growth and state GDP growth. For Connecticut to re-open for business, jobs of any state in it must encourage entrepreneurship and allow aspirational workers a chance to succeed. One way to clear the path for those seeking work the nation. is through sensible policy, like reforming our state’s burdensome occupational licensing requirements. Occupational licensing reform has become a prominent issue across the ideological spectrum.
    [Show full text]