Texas continues to set records for labor force size and employment, showing everyday citizens the value of our state as a place to live and work. This also means that the Texas Legislature took reform seriously and also the reason the economy will continue to be at the top of the list in the next session.
Last year, I had the pleasure of speaking with committees for both the House of Representatives and the Senate of the state of Texas to discuss House Bill 11. This bill, among others, was a significant step taken by lawmakers to reduce the state’s regulatory burden.
The positive momentum from HB 11 must continue, and there is still plenty of room for growth. Occupational licensing reform is a prime example.
According to the State Occupational Licensing Index, produced by the Archbridge Institute, Texas is the third most burdensome state when it comes to occupational licensing. Most Texans don’t know it, but occupational licensing affects more people than the minimum wage and union employment combined. Licensing makes it more difficult to pursue a line of work, reduces the number of professionals, and increases prices for consumers.
When it is difficult to get your AC repaired in May because all the technicians are booked for a month out, that’s partially because of a license.
Most people understand that their electricians and plumbers need licenses to do their jobs, but there are so many more workers who need a license in all kinds of fields. If you are trying to lose weight or dress up for an event, you will have to talk to a licensed professional. Dietitians, barbering, cosmetology and laser hair removal all require a license in Texas.
Texas did take steps toward reducing the burden of licensure last year. House Bill 11 should increase reciprocity with states that have similar standards to Texas.
House Bill 12 added a midcycle review through each 12-year sunset review cycle.
One of the most difficult aspects related to regulation is that once it is in place, it is difficult to remove it. The Sunset Review Commission assesses whether agencies are still appropriate and reports on that relevance (or lack thereof) to the Legislature. Adding a midcycle review increases the amount of scrutiny for each board, helping to reduce the broader burden on the public.
While these steps bode well for Texas, they are just the first steps, not the finish line. There are still possible improvements, most notably universal licensing recognition.
Continue reading at The Dallas Morning News.
Noah Trudeau, PhD, is a labor policy fellow at the Archbridge Institute and lead author of the institute’s “State Occupational Licensing Index.” He is an assistant professor of economics at Troy University. His research focuses on occupational regulation. When not working on regulatory studies, Noah studies and contributes to pedagogy for the classroom by designing new methods for encouraging student engagement. Dr. Trudeau earned his Ph.D. in economics from West Virginia University.
Economics of Flourishing
Texas continues to set records for labor force size and employment, showing everyday citizens the value of our state as a place to live and work. This also means that the Texas Legislature took reform seriously and also the reason the economy will continue to be at the top of the list in the next session.
Last year, I had the pleasure of speaking with committees for both the House of Representatives and the Senate of the state of Texas to discuss House Bill 11. This bill, among others, was a significant step taken by lawmakers to reduce the state’s regulatory burden.
The positive momentum from HB 11 must continue, and there is still plenty of room for growth. Occupational licensing reform is a prime example.
According to the State Occupational Licensing Index, produced by the Archbridge Institute, Texas is the third most burdensome state when it comes to occupational licensing. Most Texans don’t know it, but occupational licensing affects more people than the minimum wage and union employment combined. Licensing makes it more difficult to pursue a line of work, reduces the number of professionals, and increases prices for consumers.
When it is difficult to get your AC repaired in May because all the technicians are booked for a month out, that’s partially because of a license.
Most people understand that their electricians and plumbers need licenses to do their jobs, but there are so many more workers who need a license in all kinds of fields. If you are trying to lose weight or dress up for an event, you will have to talk to a licensed professional. Dietitians, barbering, cosmetology and laser hair removal all require a license in Texas.
Texas did take steps toward reducing the burden of licensure last year. House Bill 11 should increase reciprocity with states that have similar standards to Texas.
House Bill 12 added a midcycle review through each 12-year sunset review cycle.
One of the most difficult aspects related to regulation is that once it is in place, it is difficult to remove it. The Sunset Review Commission assesses whether agencies are still appropriate and reports on that relevance (or lack thereof) to the Legislature. Adding a midcycle review increases the amount of scrutiny for each board, helping to reduce the broader burden on the public.
While these steps bode well for Texas, they are just the first steps, not the finish line. There are still possible improvements, most notably universal licensing recognition.
Continue reading at The Dallas Morning News.
Noah Trudeau
Noah Trudeau, PhD, is a labor policy fellow at the Archbridge Institute and lead author of the institute’s “State Occupational Licensing Index.” He is an assistant professor of economics at Troy University. His research focuses on occupational regulation. When not working on regulatory studies, Noah studies and contributes to pedagogy for the classroom by designing new methods for encouraging student engagement. Dr. Trudeau earned his Ph.D. in economics from West Virginia University.
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