New Occupational Licensing Report shows widespread high barriers to Work
Texas Insider Report: ARLINGTON Va. More and more Americans now need the governments permission before they can pursue the occupation of their choice. And a new national report released today by the Institute for Justice shows that for lower-income Americans these
government-imposed occupational licensing" hurdles are not only widespread but often unreasonably high. So how does Texas stack up? License to Work: A National Study of Burdens from Occupational Licensing details licensing requirements for 102 low- and moderate-income occupations in all 50 states and D.C. It is the first national study of licensing to focus on lower-income occupations and to measure the burdens licensing imposes on aspiring workers.
So how does Texas stack up?
Texas licenses 34 lower-income occupations fewer than most states but has the 17th most burdensome licensing laws.
- These laws impose an average of $304 in fees 326 days of training and two exams on those wishing to enter licensed occupations.
- Texas can promote employment for low-income workers by reducing these high barriersor eliminating them altogether.
- Texas outpaces most other states education and experience requirements for a few occupations.
- Because they must be licensed teachers aspiring school sports coaches must have four years of education one of only four states to require anything remotely close to that.
- Texas is the only state to require more than two weeks of training to become a backflow prevention assembly tester and it requires two years.
Aspiring practitioners in Texas also face high fees. For example fishers must pay fees of $4800 almost 12 times higher than the average fee of $403. Texas is also one of only five states to license shampooers requiring a worker to pay $128 in fees and to pass two exams in order to wash somebodys hair.
In Texas it takes just 33 days of training to earn a license as an emergency medical technician. But it takes substantially more to become a:
- Licensed massage therapist (117 days)
- Manicurist (140)
- Skin care specialist (175)
- Cosmetologist (350)
- or Barber (350).
Occupations like these where training
required does not line up with public safety concerns make possible targets for reform as well as occupations that are more difficult to enter in Texas than elsewhere.
For a video on this report visit: www.ij.org/LicenseToWorkVideo
Visit the interactive version of License to Work at www.ij.org/LicenseToWork
All of the 102 occupations studied in License to Work are licensed in at least one state. On average these government-mandated licenses force aspiring workers to spend nine months in education or training pass one exam and pay more than $200 in fees. One third of the licenses take more than one year to earn. At least one exam is required for 79 of the occupations.
These licensing laws force people to spend a lot of time and effort earning a license instead of earning a living" said Dr. Dick Carpenter director of strategic research at the Institute for Justice and a report co-author. They make it harder for people to find jobs and to build new businesses that create jobs."
Data show that those practicing the 102 occupations studied are not only more likely to be low-income but also to be minority and to have less education likely making licensing hurdles even harder to overcome. In addition about half the 102 occupations offer the possibility of entrepreneurship suggesting these laws affect both job attainment and creation.
How States Rank
Louisiana licenses 71 of the 102 occupations more than any other state followed by Arizona (64) California (62) and Oregon (59). Wyoming with a mere 24 licenses the fewest followed by Vermont and Kentucky each at 27. Hawaii has the most burdensome average requirements for the occupations it licenses while Pennsylvanias average requirements are the lightest.
Arizona leads the nation with the worst combination of number of licenses and burdensome requirements to secure those licenses followed by California Oregon Nevada Arkansas Hawaii Florida and Louisiana. In those eight states it takes on average a year-and-a-half of training an exam and more than $300 to get a license a tremendous burden for would-be entrepreneurs and workers.
Are All These Licenses Necessary?
Noted licensure expert Morris Kleiner found that in the 1950s only one in 20 U.S. workers needed government permission to pursue their chosen
occupation. Today it is closer to one in three. Yet research to date provides little evidence that licensing protects public health and safety or improves products and services. Instead it increases consumer costs and reduces opportunities for workers.
License to Work provides additional reasons to doubt that many licensing regimes are needed. First most of the 102 occupations are practiced somewhere without government permission and apparently without widespread harm: Only 15 are licensed in 40 states or more and on average the 102 occupations are licensed in just 22 statesfewer than half. Second licensure burdens often vary considerably across states calling into question the need for severe burdens.
For instance although 10 states require four months or more of training for manicurists Alaska demands only about three days and Iowa about nine days. Such disparities are prevalent throughout the occupations studied. Finally the difficulty of entering an occupation often has little to do with the health or safety risk it poses.
Of the 102 occupations studied the most difficult to enter is interior design a harmless occupation licensed in only three states and D.C. By contrast emergency medical technicians (EMTs) hold lives in their hands yet 66 other occupations face greater average licensure burdens including barbers and cosmetologists manicurists and a host of contractor designations.
The data cast serious doubt on the need for such high barriers or any barriers to many occupations" said Lisa Knepper IJ director of strategic research and report co-author. Unnecessary and needlessly high licensing hurdles dont protect public health and safetythey protect those who already have licenses from competition keeping newcomers out and prices high."
Carpenter concluded Finding a job or creating new jobs should not require a permission slip from the government. As millions of Americans struggle to find productive work one of the quickest ways legislators can help is to simply get out of the way: reduce or remove needless licensure burdens."
License to Work: A National Study of Burdens from Occupational Licensing is the first national study to measure how burdensome occupational licensing laws are for lower-income workers and aspiring entrepreneurs. The report documents the license requirements for 102 low- and moderate-income occupations such as barber massage therapist and preschool teacher across all 50 states and the District of Columbia.
