Income inequality has become a prominent issue and a major political talking point. How should U.S. policymakers address income inequality concerns? Suggestions from experts and political pundits include increasing investment in higher education and wealth redistribution. Some have even gone so far as to suggest that the government provide more subsidies for higher education so that it becomes “free.”
In order to better understand wealth and income inequality, however, we need to examine how occupational opportunities for low-wage and entry-level workers impact income mobility. Expanded opportunities for low income workers could help them climb the income ladder, and by doing so realize the American Dream. A reduction in occupational opportunities might make that dream harder to realize. A new study that we co-authored examines the impact of a changing structure of low- to moderate-income occupational licensing and investigates the relationship between this changing structure and subsequent changes in absolute upward mobility and inequality.
Our study (co-authored with Andrew Meehan of Central Michigan University and John Hazenstab of Saint Francis University) examines the growth of licensing among 102 low- to moderate-income occupations referenced by the Institute for Justice. Licensing requirements for these occupations vary dramatically from state to state. For some occupations, licensing is relatively rare.
Continue reading at The Hill.
Edward Timmons, PhD, is Vice President of Policy at the Archbridge Institute. He leads the institute's economic policy strategy, identifying focus areas and disseminating work to key stakeholders and policymakers. His own research focuses on labor economics and regulatory policy; he is regularly asked to provide expert testimony to U.S. states on occupational licensing reform and the practice authority of nurse practitioners. Dr. Timmons received his Ph.D. in economics from Lehigh University and his B.A. in economics and actuarial science from Lebanon Valley College. He publishes a weekly newsletter on Substack with the latest research and policy insights surrounding occupational licensing.
Economics of Flourishing
Income inequality has become a prominent issue and a major political talking point. How should U.S. policymakers address income inequality concerns? Suggestions from experts and political pundits include increasing investment in higher education and wealth redistribution. Some have even gone so far as to suggest that the government provide more subsidies for higher education so that it becomes “free.”
In order to better understand wealth and income inequality, however, we need to examine how occupational opportunities for low-wage and entry-level workers impact income mobility. Expanded opportunities for low income workers could help them climb the income ladder, and by doing so realize the American Dream. A reduction in occupational opportunities might make that dream harder to realize. A new study that we co-authored examines the impact of a changing structure of low- to moderate-income occupational licensing and investigates the relationship between this changing structure and subsequent changes in absolute upward mobility and inequality.
Our study (co-authored with Andrew Meehan of Central Michigan University and John Hazenstab of Saint Francis University) examines the growth of licensing among 102 low- to moderate-income occupations referenced by the Institute for Justice. Licensing requirements for these occupations vary dramatically from state to state. For some occupations, licensing is relatively rare.
Continue reading at The Hill.
Edward Timmons
Edward Timmons, PhD, is Vice President of Policy at the Archbridge Institute. He leads the institute's economic policy strategy, identifying focus areas and disseminating work to key stakeholders and policymakers. His own research focuses on labor economics and regulatory policy; he is regularly asked to provide expert testimony to U.S. states on occupational licensing reform and the practice authority of nurse practitioners. Dr. Timmons received his Ph.D. in economics from Lehigh University and his B.A. in economics and actuarial science from Lebanon Valley College. He publishes a weekly newsletter on Substack with the latest research and policy insights surrounding occupational licensing.
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