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Some of the worst barriers to starting businesses, changing jobs, or moving from one state to another are occupational licensing requirements. The need to get permission from the government to work protects existing practitioners at the expense of those trying to enter trades and professions. That reduces competitive pressure that could improve quality and lower prices. If you’re trying to maneuver your way around such impediments to prosperity, you might be interested in a new report that examines licensing requirements for each state plus the District of Columbia and ranks them from best to worst.

The burden of occupational licensing has changed little from last year’s edition of this report. “Occupational licensing affects more than 20% of workers in the United States,” note co-authors Noah Trudeau of the Archbridge Institute, which publishes the State Occupational Licensing Index, Edward Timmons, director of the Knee Regulatory Research Center at West Virginia University, and Clemson University’s Sebastian Anastasi. That’s the same share as in 2023, though this year’s Index looks at 284 occupations rather than the 331 considered in 2023 because of consolidation of some job categories and reconsideration of what constitutes a license.

Read the full article at Reason. 

Read the 2024 State Occupational Licensing Index report here.

Reason
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