The Heavy Costs of Occupational Licensing

[Ethereal]

https://www.youtube.com/watch?v=4tbVRC_oOTU

In many case, the noble intent of occupational licensing is just a cover for profit motive.

Self-serving boards, interested in protecting their profit margins from competition, will erect barriers to entry in the form of regulations, especially licenses.

But as the video notes, licensing doesn't stop people from doing unethical or dangerous things. It just stops competition from flourishing and promotes the cartelization of a given market. The end result is less jobs and higher prices. Ironically enough, the loss of job opportunities and the higher prices will effect the poorest the most.

Market regulation (i.e., competitive forces) is more than adequate to ensure that the vast majority of suppliers stay honest and fair. But if competition is constrained by burdensome taxes and regulations, market regulations cannot work properly.

On net, occupational licensing is a burden on society. Intelligently paring back regulations like these will help our economy flourish.

[DGUtley]

Same goes for mandatory continuing education requirements. Pure PR.

[Common]

Same goes for mandatory continuing education requirements. Pure PR.
There are exceptions to that, continuing education is necessary in some fields like medicine, any field where the science changes regularly.

[Common]

I can give the perfect example of exclusion. In New Jersey to be a licensed cosmotologist you go to school and take the final test and theres is no shaving requirement.

If you move to New Jersey and the state you came from doesnt have reciprocity you have to take the final test that the students do, "EXCEPT" you have to shave a live subject with a straight razor. NO cosmotologists shave men. Its done for exclusion, to exclude other people coming from out of state and wanting to open up salons. Its a complete unnecessary barrier

[OddFellow]

I totally disagree. Licensing keeps competition out in a good way. More people competing for jobs in a market means it brings the salaries down of the employees. Labor Unions are great! if it weren't for unions a lot of people in trades wouldn't be able to have the nice jobs they have. You want the job you got go through the fire to get it. Four years of apprenticeship and then become licensed. It eliminates a lot of competition in a good way keeps those in the field more employable and they are able to have better salaries.

I am a licensed Commercial Truck Driver, you can't just throw anyone on the road who wants to drive a truck thats dangerous.

[Captain Obvious]

I totally disagree. Licensing keeps competition out in a good way. More people competing for jobs in a market means it brings the salaries down of the employees. Labor Unions are great! if it weren't for unions a lot of people in trades wouldn't be able to have the nice jobs they have. You want the job you got go through the fire to get it. Four years of apprenticeship and then become licensed. It eliminates a lot of competition in a good way keeps those in the field more employable and they are able to have better salaries.

I am a licensed Commercial Truck Driver, you can't just throw anyone on the road who wants to drive a truck thats dangerous.

So the hundreds of thousands of dollars cabbies spent on cab licensing was worth it?

Follow the money

[The Xl]

It's all pay to play bullshit. It's how the rich keep a monopoly on their spots and keep lower class people lower class. It takes an arm and a leg to be "certified" or "qualified" in anything.

[Cthulhu]

It's all pay to play bull$#@!. It's how the rich keep a monopoly on their spots and keep lower class people lower class. It takes an arm and a leg to be "certified" or "qualified" in anything.For the most part I agree.

But you don't exactly want a home brew chemist doing pest control... Due to biological magnification.

Me thinks the line should be drawn where catastrophe and loss of life can occur due to carelessness - doctor's, linemen, firefighters...

But since the system is rigged so badly. I'm at the point I say burn it down and let Darwin determine who can and can't do the job and let market forces take over.

We don't have intelligent regulation, we have industry protectionism.

Sent from my evil cell phone.

[Cthulhu]

I totally disagree. Licensing keeps competition out in a good way. More people competing for jobs in a market means it brings the salaries down of the employees. Labor Unions are great! if it weren't for unions a lot of people in trades wouldn't be able to have the nice jobs they have. You want the job you got go through the fire to get it. Four years of apprenticeship and then become licensed. It eliminates a lot of competition in a good way keeps those in the field more employable and they are able to have better salaries.

I am a licensed Commercial Truck Driver, you can't just throw anyone on the road who wants to drive a truck thats dangerous.It also jacks up prices artificially by keeping capable people and providers out of work.

Not the best idea.

Sent from my evil cell phone.

[OddFellow]

It also jacks up prices artificially by keeping capable people and providers out of work.

Not the best idea.

Sent from my evil cell phone.

Well thats really a good thing. You want keep competition out if too many people flood the market they drive those wages down to where that job is no longer a living wage job. Look at the IT industry no license to work in the IT industry or apprenticeship required unlike other professions.When I got my undergrad in computer science years ago a Desktop Technician started at like $20/hr no experience needed out of college. This was when there was an explosion of tech jobs and it was a good profession then. Now your lucky to land a part-time $10-12/hr job as a Desktop Technician and they want previous years of experience. This is why I am driving a truck instead of continuing to work in IT. Professions like truck driving, nursing, teaching, CPA's, electricians, carpenters, etc need a license to be eligible to even do the job so that keeps a lot people out and thus prevents their salaries being cut by too many people trying to get in the profession.

[Ethereal]

Well thats really a good thing. You want keep competition out if too many people flood the market they drive those wages down to where that job is no longer a living wage job. Look at the IT industry no license to work in the IT industry or apprenticeship required unlike other professions.When I got my undergrad in computer science years ago a Desktop Technician started at like $20/hr no experience needed out of college. This was when there was an explosion of tech jobs and it was a good profession then. Now your lucky to land a part-time $10-12/hr job as a Desktop Technician and they want previous years of experience. This is why I am driving a truck instead of continuing to work in IT. Professions like truck driving, nursing, teaching, CPA's, electricians, carpenters, etc need a license to be eligible to even do the job so that keeps a lot people out and thus prevents their salaries being cut by too many people trying to get in the profession.
There is nothing "good" about artificially driving up the price of labor. The increased costs of labor are priced into the goods and services we all buy, which means people are actually able to afford less on average. The fact that artificially inflated wages may benefit a small subset of the labor force does not even remotely justify the higher prices that consumers will have to pay as a result.

[Kacper]

So the hundreds of thousands of dollars cabbies spent on cab licensing was worth it?

Follow the money

Depends on where you live. In my city a medallion is something like $65/year

[Cthulhu]

Well thats really a good thing. You want keep competition out if too many people flood the market they drive those wages down to where that job is no longer a living wage job. Look at the IT industry no license to work in the IT industry or apprenticeship required unlike other professions.When I got my undergrad in computer science years ago a Desktop Technician started at like $20/hr no experience needed out of college. This was when there was an explosion of tech jobs and it was a good profession then. Now your lucky to land a part-time $10-12/hr job as a Desktop Technician and they want previous years of experience. This is why I am driving a truck instead of continuing to work in IT. Professions like truck driving, nursing, teaching, CPA's, electricians, carpenters, etc need a license to be eligible to even do the job so that keeps a lot people out and thus prevents their salaries being cut by too many people trying to get in the profession.Living wage is a myth. Try again.

Get better skills that are worth more money.

Don't rely on government to bail your hide out.

Sent from my evil cell phone.

[resister]

Living wage is a myth. Try again.

Get better skills that are worth more money.

Don't rely on government to bail your hide out.

Sent from my evil cell phone.
Living wage equals one absent paycheck away from eviction.

[AeonPax]

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In urban and suburban areas, licensing is ridiculous wide spread operation being done strictly as a local revenue source.

[Mechanic]

I prefer a licensed contractor to build a house or make a repair. I have seen too many unlicensed people try to do construction that resulted in failure.

[Kacper]

Living wage equals one absent paycheck away from eviction.

Increasing minimum wages just increases rents. It doesn't provide any extra degree of protection from eviction.