WHY OCCUPATIONAL LICENSING? Cosmetology licensing regulations were created in the 1930s in response to barbering boards that cracked down on hairdressers who were also cutting hair.
The story of state occupational licensing is the same across most occupations.
The California Contractors State License Board claims to protect "Consumers by regulating the construction industry through policies that promote the health, safety, and general welfare of the public." Like most occupational licensing boards, the California board has not had to demonstrate that its restrictions actually improve health and safety.
In occupations whose workers earn less than the national median income, the average licensing costs include nearly a year of education or training, passing an exam, and paying licensing fees, according to the latest License to Work study by the Institute for Justice.
Workers are beginning to push back, and policymakers are beginning to reform occupational licensing across the country.
Congress is now considering a bill in response to the Federal Trade Commission case that would help states reform occupational licensing rules.
The Restoring Board Immunity Act would give limited legal immunity from antitrust lawsuits if states do one of two things: periodically review licensing boards to detect and end anticompetitive behavior, or place the burden on the government to show that occupational licensing regulations are necessary.
https://www.cato.org/policy-report/septemberoctober-2018/tangled-mess-occupational-licensing
The story of state occupational licensing is the same across most occupations.
The California Contractors State License Board claims to protect "Consumers by regulating the construction industry through policies that promote the health, safety, and general welfare of the public." Like most occupational licensing boards, the California board has not had to demonstrate that its restrictions actually improve health and safety.
In occupations whose workers earn less than the national median income, the average licensing costs include nearly a year of education or training, passing an exam, and paying licensing fees, according to the latest License to Work study by the Institute for Justice.
Workers are beginning to push back, and policymakers are beginning to reform occupational licensing across the country.
Congress is now considering a bill in response to the Federal Trade Commission case that would help states reform occupational licensing rules.
The Restoring Board Immunity Act would give limited legal immunity from antitrust lawsuits if states do one of two things: periodically review licensing boards to detect and end anticompetitive behavior, or place the burden on the government to show that occupational licensing regulations are necessary.
https://www.cato.org/policy-report/septemberoctober-2018/tangled-mess-occupational-licensing
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