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, 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.
Conor Norris, PhD, is a regulatory policy fellow at the Archbridge Institute, director of labor policy at the Knee Regulatory Research Center, and a teaching associate professor of general business at West Virginia University. He has shared his research with state legislators and policymakers, authoring white papers and providing expert testimony to state legislatures on occupational licensing reform and the practice of telemedicine. Dr. Norris received his Ph.D. in economics from the Universidad Francisco Marroquín and his M.A. in economics from George Mason University.
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, 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.
Conor Norris
Conor Norris, PhD, is a regulatory policy fellow at the Archbridge Institute, director of labor policy at the Knee Regulatory Research Center, and a teaching associate professor of general business at West Virginia University. He has shared his research with state legislators and policymakers, authoring white papers and providing expert testimony to state legislatures on occupational licensing reform and the practice of telemedicine. Dr. Norris received his Ph.D. in economics from the Universidad Francisco Marroquín and his M.A. in economics from George Mason University.
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