Occupational Licensing Blunts Competition and Boosts Inequality (economist.com)
Occupational licensing -- the practice of regulating who can do what jobs -- has been on the rise for decades. In 1950 one in 20 employed Americans required a licence to work. By 2017 that had risen to more than one in five. From a report: The trend partly reflects an economic shift towards service industries, in which licences are more common. But it has also been driven by a growing number of professions successfully lobbying state governments to make it harder to enter their industries. Most studies find that licensing requirements raise wages in a profession by around 10%, probably by making it harder for competitors to set up shop.
Lobbyists justify licences by claiming consumers need protection from unqualified providers. In many cases this is obviously a charade. Forty-one states license makeup artists, as if wielding concealer requires government oversight. Thirteen license bartending; in nine, those who wish to pull pints must first pass an exam. Such examples are popular among critics of licensing, because the threat from unlicensed staff in low-skilled jobs seems paltry. Yet they are not representative of the broader harm done by licensing, which affects crowds of more highly educated workers like Ms Varnam. Among those with only a high-school education, 13% are licensed. The figure for those with postgraduate degrees is 45%.
[...] One way of telling that many licences are superfluous is the sheer variance in the law across states. About 1,100 occupations are regulated in at least one state, but fewer than 60 are regulated in all 50, according to a report from 2015 by Barack Obama's White House. Yet a handful of high-earning professions are regulated everywhere. In particular, licences are more common in legal and health-care occupations than in any other.
Lobbyists justify licences by claiming consumers need protection from unqualified providers. In many cases this is obviously a charade. Forty-one states license makeup artists, as if wielding concealer requires government oversight. Thirteen license bartending; in nine, those who wish to pull pints must first pass an exam. Such examples are popular among critics of licensing, because the threat from unlicensed staff in low-skilled jobs seems paltry. Yet they are not representative of the broader harm done by licensing, which affects crowds of more highly educated workers like Ms Varnam. Among those with only a high-school education, 13% are licensed. The figure for those with postgraduate degrees is 45%.
[...] One way of telling that many licences are superfluous is the sheer variance in the law across states. About 1,100 occupations are regulated in at least one state, but fewer than 60 are regulated in all 50, according to a report from 2015 by Barack Obama's White House. Yet a handful of high-earning professions are regulated everywhere. In particular, licences are more common in legal and health-care occupations than in any other.
A prospective: Milton Friedman's thoughts on Licensing .
You want a capitalist free market, but only for other people.
there are multiple tiers of the license. How much you need depends on what chemicals you work with. If you're a dude (most of us /.ers are) you have no idea how crazy some of chemicals they work with are. The stuff women will do to get straight hair if they're born with curly or curly hair if they're born with straight is absurd. Come to think of it, every girl I've ever met wants the opposite type of hair they were born with...
I think the rise of licenses isn't just mean spirited folks wanting to raise wages. It's got more to do with computers making it easy to track folks and wide spread mass media leading to more people hearing stories of what happens when somebody without training does something dangerous. If it's one thing that 20 years in the workforce has taught me it's that companies do as little training as humanly possible.
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If you want to help solve this, donate to the Institute for Justice. They are the most prominent organization fighting "license to be employed" laws.
The one who wields a brush applies dangerous chemicals to peoples faces.
The latter makes perfect sense to license or oversee in some way or another.
Why? The guy at the 7-eleven who rings up your beer purchase isn't licensed. Home brewers aren't licensed. A friend who has you over for a couple beers isn't licensed.
People have been drinking beer and for thousands of years without government meddling. Other than the government collecting a fee and employing a professional meddler, how is it different or better with government meddling?
That engineer has to be able to prove their bridge will work over time for the use it was designed for, in the conditions it was built.
Giving away the word "engineer" to someone with no skills for "equality" reasons will not result in a bridge that works long term.
Nations need to have confidence in the bridges they use.
Need medical care? the doctor, any doctor in any hospital should have passed that nations medical exams and be under constant review and have their results look at.
A medical system needs to have confidence that any on duty doctor can do what they got a job for.
A rescue helicopter to get people to hospital that can fly day and night needs the crew to actually be able to fly in day and night conditions.
A person working on a production like and its electoral system needs to be able to show they have the skills to work on that system.
That "licence" tells the factory owner, the insurance company and all other workers the work done is to a nations standards and was correct and safe.
That any further work can build on existing quality work.
The electrical, water, gas networks have to be designed and installed to some standard so all surrounding homes are safe to some standard for many years.
Domestic spying is now "Benign Information Gathering"
It keeps the equipment sanitary. I don't want my beer strained through the brewer's wife's old unwashed stockings.
In other words, because of the profit motive, people will take shortcuts and cheat at the expense of the consumer - even if it kills them.
The Libertarian fairy tale is that the Free Markets (all be Praised Hallelujah!) will take care of it. Folks will realize the bad behavior and not give them business anymore.
One, people are stupid. Read 5 star reviews on Amazon and you'll see folks are too nice. "I got the package! FIVE stars!!!"
Two, so I put road kill into your hot dogs - tainted with motor oil and other crap - but it tastes good and you don't notice.
A-Okay! Right?!
Sue?!? Really? DO you know that ALL dietary supplement companies are frauds? Thanks to Orin Hatch (R-Utah), the FDA has the burden of prrof if one of those worthless products don't work - and none do.
I can stuff a gelantin capsule with confectioners sugar and call it anything I want and charge $$$$$$, claim what I want (with a legalease disclaimer) and the FDA is the one that has to prove its bogus.
And thanks to the Republicans - ONLY the Republicans - the FDA doesn't have the money to do any enforecement on the fraudulent dietray supplement industry.
Thanks to Orin Hatch (R- retard of Utah-Moron kooks)
The Republicans have enabled fraud and poisoning by industry.
What guilds you ask? Way back when, anyone could claim to be a bread maker, or tanner, or brewer. At some point, due to various reasons, those who took pride in their work and felt their standard of excellence should be met by the shyster down the stall banded together and formed guilds.
Those guilds set minimum standards for quality such as no sawdust in bread or beer which wasn't watered down or had spices thrown in to cover up bad tastes or bad alcohol.
Fast forward to today and for somewhat similar reasons, professions want people to meet minimum standards of service. For example, the person who colors your hair should have some basic knowledge of how not to burn your skin or turn your hair into straw when applying the mixed chemicals.
Now I know what many of you are going to say. "I'm a programmer and I've never been involved in a guild or union or anything like them. Employers simply hire me."
Oh really? Those employers never asked what your qualifications were? Never asked how many years experience you had in python or Rust or whatever language they're looking for? They never asked to see examples of your work? Never quizzed you on your knowledge?
What they did is no different than what people being licensed go through. You have to meet some minimum standard set by the employer in the same manner someone has to meet the minimum standard to be a cosmetologist, an attorney or doctor.
To those who say, "Free markets!", what happens when your scalp is burned getting your hair colored? What if the person, somehow, gets the wash in your eyes and causes damage? Your response is most likely to get an attorney to sue them for damages. Question: how do you know that attorney is qualified to handle your case?
The thing you didn't mention explicitly is that coming up with these things is not useless to them.
Unless a way can be found to make it so, they'll keep doing it, and their power extends strongly downward, while ours extends upwards in a very weak and diffused manner. Even that may be an illusion; the number of non-establishment legislators who are willing to reform the various agencies with regulatory power are few indeed: we can't seem to get out of the two-party imposed oligarchy at all.
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You're required to pass a test on how to recognize fake ids, determine if someone has had too much to drink and needs to be shut off, and what your legal responsibilities and liabilities are as a server. The permit cost is $8.99, and includes a video tutorial.
That seems pretty reasonable to me. It's not like they're testing you on whether you can mix a Martini.
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Areas where tourism is a big industry obviously are going to want to license tour guides. Bad tour guides can give a destination a bad reputation or lead to tourists getting ripped off or mugged. Much like a hotel wants to maintain a level of service, tourist destinations do as well. Some places also have a healthy respect for their history and want to make sure it is accurately represented.
Carpenters frame houses. I've seen a badly framed house. I've seen a ceiling collapse due to poor carpentry. Why you think being able to build to code shouldn't require a test is beyond me.
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Professional Electrical Engineer here... No, being licensed doesn't mean you are good, but it does serve to keep a very high percentage of people that are not good out. It also places responsibility and pressure on young engineers to know their shit.
Federal-level licensing for most fields makes more sense though. Structural engineering is the obvious exception; geotechnical might be as well.
Given the prevalence of autocorrect, it is no longer possible to distinguish a typo from choosing an incorrect but similar word.
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You're confusing two different concepts. Certifications aren't licences. In a field which requires a license you cannot legally work unless you have it. Whereas in IT I do not NEED an MCSE "license" in order to play minesweeper or solitaire; I'm just more likely to be hired by a pointy haired boss if I have the certification.
At some point you are correct. There are certain professions that should require licensing. Generally these are professions that involve some level of personal safety (medical) or fiduciary responsibility (legal.)
At some point your argument falls apart. Not exactly sure why you need to be licensed to:
Decorate a house
Braid hair (NOT cut it)
Walk dogs
Sell caskets
Be a locksmith
Run a pawn broker
Run a flower shop
Operate a food truck (ON TOP of your regular commercial drivers license AND health certificate)
Install home theater equipment
Run a travel agency
Package things for shipping
Upholster furniture
I'm sure you could come up with some corner case that would involve safety in any of these cases, but you could do the same for, pretty much, ANY profession.
So the question becomes is if the licensing scheme is doing more to protect consumers, or to protect established professionals from competition.
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As someone who has been involved in fashion, art, and glamour photography for some time, I find the article's dismissal of cosmetology licensing to be careless and poorly researched.
Applying makeup is a licensed activity because of significant health and safety issues related to hygiene and proper use of certain products (such as latex, for example, as used in the movie and theater industries). You could very literally lose an eye, go into anaphylactic shock, or get a nasty rash because some village idiot decided to play makeup artist and didn't know what they were doing. People doing this really DO need to know what they are doing.
Likewise, bartender licenses are less about memorizing obscure drink recipes and more about properly working within the law around alcoholic drinks and potentially inebriated customers. These licenses are not a burden to obtain (working with a non-profit art gallery, we obtained them for some of our board members so we could legally serve wine at our shows), and they are a serious intervention to help cut down on drunk driving, alcohol poisoning, and underage drinking.
Here in Texas, the licensing agency recently got rid of mandatory licensing of interior designers (my wife is one) and talent/modeling agencies (which, again, I'm familiar with through photography). The result is a total disaster in both fields. To do an effective job, interior designers need to understand building codes, proper construction techniques, when to call in a structural engineer, permitting, blueprints and drawings, special laws around commercial furniture, etc. But without a license, anyone who watches a bunch of HGTV and thinks they are the next Joanna Gaines can go represent themselves as a designer, and homeowners and businesses *don't know what they don't know*. And in the talent agency world, particularly in modeling, there is a HUGE problem of outright scams, not to mention sketchy guys claiming to "manage" models or singers, who act more like wannabe pimps.
So yeah, maybe licensing can be a bit of a protection racket in some industries, but it's way too easy to deride someone else's education from a place of ignorance about the service they are performing and the risks involved in the decisions they make.
(Also, make no mistake, this article isn't about makeup or pints of lager, it's about an ongoing, long-term, well-funded dispute about what the differences should be between a doctor and a nurse practitioner. The arguments about other industries are merely window-dressing.)
You're missing the point: the article is basically the standard neo-Liberal (for US readers: Libertarian) propaganda piece you'd expect from The Economist.
While not as bad as Koch-funded think tanks, on economy their stance is virtually the same: take away all worker protections and let the owner class run Gilded Age style rampant.
"I know I will be modded down for this": where's the option '-1, Asking for it'?
There is and there is not. Per se, there is nothing wrong with certification — whereby someone else attests, that you know and/or are skilled at some field.
Licensing is the government turning a right, which only the Judicial branch can revoke upon successful prosecution by the Executive for violating Legislature-issued laws, into a mere privilege, which the Executive can deny or withdraw on a whim.
The concepts often work together and so are easily confused:
Such requirements deprive us of rights. According to TFA, they also make us less efficient, but I don't think that ought to matter — because the rights are more important, even if the efficiency actually improved.
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I don't disagree; it's good to have some verification of the expected qualifications. But it needs to be applied sanely. Last time this subject came up, I looked up my state's list of licensed professions (outside of engineering and medicine), and requirements thereto. Most were sane enough -- some 50-60 hours of training for the more-basic jobs, a bit more for the more-complex.
And then there was the weird outlier -- a requirement of 1100 hours of training for (IIRC) physical trainer. And I was like, WTF? Did someone take such a dislike to the profession as to effectively prohibit it??
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