Occupational Licensing: Protecting the Public Interest or Protectionism?

Authors

Morris M. Kleiner, University of MinnesotaFollow

Issue Date

July 2011

Abstract

The issue of the government regulation of occupations involves the role of government in reconciling the special interests of the practitioners with those of society. The strictest form of occupational regulation is occupational licensing which is extensive and growing. In 2008, nearly 30 percent of the workforce was required to hold a license up from around 10 percent in 1970. There are potential job loss implications in the growth of occupational licensing for the labor market and the economy. An alternative form of regulation, the certification of occupations, which does not impose a "closed shop" on entry and mobility, may be a policy to avoid the job loss implications of occupational licensing.

Series

Policy Paper No. 2011-009

DOI

10.17848/pol2011-009

Sponsorship

W.E. Upjohn Institute Grant No. 07-109

Keywords

occupational regulation, occupational registration, occupational licensing, occupational requirements, career certification, occupational certification, registration, government regulation, wages

Subject Areas

LABOR MARKET ISSUES; Occupational regulation and licensing