The Continuing Burden of Occupational Licensing in the United States

Abstract

This study follows up an earlier study in which we examined the scope and burden of 102 occupational licensing laws in the United States for low‐ and moderate‐income occupations. Using data collected in 2017, findings indicate that the licences studied require of aspiring workers, on average, US$262 in fees, one exam, and about 12 months of education and training, plus minimum grade and age levels. Data also indicate striking disparities in requirements within and between occupations and within and between states. A comparison with licensing requirements in 2012 indicates that requirements have generally increased, with the greatest increase being in fees. Among states, Alaska and Hawaii saw the greatest increases in licensing requirements.

Occupational licensing and job mobility in the United States

“…The ranking is largely consistent with the result from a similar exercise by Carpenter et al (2018); see occupations in 2017, focusing on five requirements (fees, education/experience, exams, minimum grade and minimum age).…”

“…This is a simplification, though unlikely to be critical given the macrolevel perspective. Available sources report only minor regulatory changes during this period (NCSL, 2017;Carpenter et al, 2018;Kilmer, 2018) and cases of de-licensing have historically been very rare (Thornton and Timmons, 2015). Between 2012 and 2017, Carpenter et al (2018) find a slight increase in the average burden of regulation based on 102 low and middle-income occupations, mainly reflecting increases in fees.…”

Laissez les bons temps rouler? The persistent effect French civil law has on corruption, institutions, and incomes in Louisiana

“…One of the more direct ways poor economic institutions appear is through burdensome regulations that make market activity difficult. The Institute for Justice publishes a ‘License to Work’ study that compares the harshness of each state's occupational licensing laws (Carpenter et al ., 2017). They find that Louisiana requires licenses for more low-income jobs than any other state (71 out of 102 occupations).…”

Introducing a new data set on municipal-level occupational regulation

“…That grew to almost 18 percent by the 1980s – with an even larger number if federal, city and county occupational licensing is included ” (p. 3, emphasis added). Carpenter et al (2017) briefly take up and illustrate this point by presenting the number of occupational licenses required just in Baltimore: “The city of Baltimore requires licenses or registrations for at least 26 occupations in addition to the 59 low- and middle- income occupations licensed by the state of Maryland” (p. 11).…”

“…With approximately 20,000 cities and towns in the USA, gathering data for even a small sample would be a substantial task. For perspective, when Carpenter et al (2012, 2015, 2017, 2018) gathered licensing requirements for 102 occupations in all 50 states and Washington, DC, it took years of full-time work to complete. Second, licensing historically has been – or has been perceived as – primarily a state-level policy issue.…”