New Study: Occupational Licensing Impedes Economic Mobility

An outrage that persists for generations.

Andrew Wilford April 16, 2018

Most research surrounding the proliferation of overly burdensome professional licensing rules focuses on the economic costs it has for society, but the repercussions of licensing laws go beyond their economic impact. With strict occupational licensing rules in place, entrenched professionals are able to restrict the number of competitors they have, raising their own wages at the expense of consumers and potential rivals. This is bad for the economy, but as a new report out of the Archbridge Institute reminds us, it is also contributes to a social ill that conservatives and libertarians often overlook — lack of economic mobility that persists through generations.

The greatest cause of poverty in this country is joblessness. Just 2.4 percent of Americans between the ages of working-age Americans with a full-time, year-round job live in poverty. For those without a job, nearly one-third live in poverty.

Unfortunately, occupational licensing is often a cause of joblessness, or at the very least a cause of Americans making less money than they could otherwise. It is estimated that 2.8 million fewer Americans are employed nationwide due to occupational licensing. That’s bad for Americans that are kept unemployed, but it’s also bad for consumers who are forced to pay higher prices due to an artificially restricted supply of licensed professionals.........To Read More....