South Dakota policymakers have a lot to be proud of. Coming in at 2.3 percent, South Dakota has the second-lowest unemployment rate in the nation — slightly higher than Utah.
There is one area, though, where South Dakota can and should do better for its citizens: occupational licensing reform.
Occupational licensing laws make it illegal for individuals to begin working in a profession before meeting entry requirements like minimum levels of schooling and training. It is essential to differentiate licensing from other types of regulation — licensing is the strictest and most onerous way to regulate a profession. There are many different ways to regulate a trade and keep consumers informed and protected.
One example is auto mechanics. Auto mechanics are not licensed in South Dakota or the United States. Instead, auto mechanics can obtain private certification to let consumers know about the training they have received.
Reputation is also important — we can look online at reviews or ask friends and family for their recommendations.
Continue reading at Inside Sources.
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
South Dakota policymakers have a lot to be proud of. Coming in at 2.3 percent, South Dakota has the second-lowest unemployment rate in the nation — slightly higher than Utah.
There is one area, though, where South Dakota can and should do better for its citizens: occupational licensing reform.
Occupational licensing laws make it illegal for individuals to begin working in a profession before meeting entry requirements like minimum levels of schooling and training. It is essential to differentiate licensing from other types of regulation — licensing is the strictest and most onerous way to regulate a profession. There are many different ways to regulate a trade and keep consumers informed and protected.
One example is auto mechanics. Auto mechanics are not licensed in South Dakota or the United States. Instead, auto mechanics can obtain private certification to let consumers know about the training they have received.
Reputation is also important — we can look online at reviews or ask friends and family for their recommendations.
Continue reading at Inside Sources.
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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