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 a senior fellow at the Archbridge Institute. He formerly served as founding director of the Knee Regulatory Research Center at West Virginia University. He is regularly asked to provide expert testimony in state legislatures across the U.S. on occupational licensing reform and the practice authority of nurse practitioners. His work is heavily cited by the popular press, and he has authored numerous articles for media publications.
Conor Norris is the assistant director of the Knee Regulatory Research Center at West Virginia 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 a senior fellow at the Archbridge Institute. He formerly served as founding director of the Knee Regulatory Research Center at West Virginia University. He is regularly asked to provide expert testimony in state legislatures across the U.S. on occupational licensing reform and the practice authority of nurse practitioners. His work is heavily cited by the popular press, and he has authored numerous articles for media publications.
Conor Norris
Conor Norris is the assistant director of the Knee Regulatory Research Center at West Virginia University.
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