Sunday, January 12, 2014

Occupational Licensing

WSJ Article Source

Freeman Article Source

From the articles:

From the WSJ: "Occupations prefer to be licensed because they can restrict competition and obtain higher wages," said Morris Kleiner, a labor professor at the University of Minnesota. "If you go to any statehouse, you'll see a line of occupations out the door wanting to be licensed."

and

From the Freeman: But while the promise of occupational regulation is great, research shows that it is rarely fulfilled. In the United States, at least, these regulations typically raise the price of services without significantly raising service quality—and indeed, in many instances regulation appears to lower the quality of services consumers buy.


Source: Stephanie Simon,"A License to Shampoo: Jobs Needing State Approval Rise," The Wall Street Journal, February 7, 2011

Source: John Hood, "Does Occupational Licensing Protect Consumers?" The Freeman, November 01, 1992

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