![]() While we’re glad to learn that many other states are fending off licensing pushes, in states like California, the problem is already widespread and in need of scaling back.Īt least for now, there’s no indication Sacramento lawmakers are interested in curtailing occupational licensing requirements. ![]() In both cases, lower-income Californians are the most negatively impacted.Īs IJ has documented, the problem here is that those with the greatest incentive to push for and defend licensing are the impacted sectors themselves, because established workers and businesses have the incentive to leverage licensing processes to keep competition at bay. In 2016, the state’s Little Hoover Commission noted that occupational licensing often creates barriers not only to low-income people trying to enter lines of work, but that licensing also leads to higher prices for consumers as well. Of the 102 occupations, the average state required licenses for 54 of them, while California required licenses for 76 of them.īut on top of that, California also required higher-than-average fees, longer and more extensive training and education requirements and required more exams for the same jobs done in other states.įor large segments of occupations, more requirements aren’t necessarily better for public health and safety or quality of services provided. In 2017, IJ released the second edition of its report “License to Work,” which studied how the 50 states licensed 102 low- and middle-income occupations. This is the only continuing education required for first license renewal after taking the national licensing exam. This may well be because, at this point, occupations where a plausible argument might be made for licensure are probably are already being licensed.įor context, licensure is extensive here in California. In a bit of good news, the report found that most reviews rejected the push for licensure. “Sunrise reviews overwhelmingly recommended against licensing - and most recommended no new regulation.”.There’s a common reason why this may be the case: occupational licensing protects those who are already in a particular line of work, while serving as a barrier to new market entrants. In general, at least two-thirds of the time, these organizations tended to call directly for licensure, rather than less restrictive alternatives. “Occupational and professional associations initiated at least 83% of sunrise reviews, while consumer advocates were behind just 4%.”.
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