ABSTRACT
The reason for occupational licensure is the effective vehicle it presents for protecting occupational incumbents from competitive pressures. Occupational licensure is an effective barrier because practicing without a license is illegal, and the apparatus of the state thus serves to enforce the law and thereby constrain supply. The White House report also found persuasive evidence that occupational licensure undermines employment and generates sustained higher wages at all income levels for licensed workers, averaging 10% to 15% more than unlicensed workers after adjusting for education and other relevant variables. The case for occupational licensure in healthcare must rest on real and cost-justified improvements in quality relative to freer markets. The Obama administration allocated funds to support state research for improved occupational licensure. The Trump and Biden administrations have also been concerned about occupational licensure and followed-up by advocating for the reform.
