Spring is here, and the labor market is facing unique challenges. Job openings are still near all-time highs as companies struggle to fill open positions. At the same time, many workers have given up looking for work entirely.
Finding skilled workers is particularly challenging for many businesses. Unnecessary red tape, such as occupational licensing laws, bears much of the blame for keeping individuals from finding work. Occupational licensing requires individuals to attain minimum levels of education and training and apply to a licensing board before they are allowed to practice. The application process requires both time and money, making it more difficult to enter a profession. Today, about 20% of workers are required to obtain a license before they can legally work.
And licensing has significant drawbacks. The requirements, which have a stated purpose to improve quality, also limit entry. Economists estimate that licensing reduces the number of professionals by up to 29%. In turn, consumers are forced to pay higher prices.
Continue reading at The Washington Examiner.
Edward Timmons, Associate Professor of Economics and Director of the Knee Center for the Study of Occupational Regulation at St. Francis University, writes frequently on the history and rise of occupational licensing and it’s relation to economic mobility.
Conor Norris is the assistant director of the Knee Regulatory Research Center at West Virginia University. Follow his work @ConorNorrisKRCC.
Economics of Flourishing
Spring is here, and the labor market is facing unique challenges. Job openings are still near all-time highs as companies struggle to fill open positions. At the same time, many workers have given up looking for work entirely.
Finding skilled workers is particularly challenging for many businesses. Unnecessary red tape, such as occupational licensing laws, bears much of the blame for keeping individuals from finding work. Occupational licensing requires individuals to attain minimum levels of education and training and apply to a licensing board before they are allowed to practice. The application process requires both time and money, making it more difficult to enter a profession. Today, about 20% of workers are required to obtain a license before they can legally work.
And licensing has significant drawbacks. The requirements, which have a stated purpose to improve quality, also limit entry. Economists estimate that licensing reduces the number of professionals by up to 29%. In turn, consumers are forced to pay higher prices.
Continue reading at The Washington Examiner.
Edward Timmons
Edward Timmons, Associate Professor of Economics and Director of the Knee Center for the Study of Occupational Regulation at St. Francis University, writes frequently on the history and rise of occupational licensing and it’s relation to economic mobility.
Conor Norris
Conor Norris is the assistant director of the Knee Regulatory Research Center at West Virginia University. Follow his work @ConorNorrisKRCC.
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