Knowledge Base
What is occupational licensing?
Occupational licensing is a legal requirement to obtain a license before working in a designated profession. In order to obtain permission to work, an individual must take classes or pay costly fees. Licenses are justified on the grounds of consumer safety, although many professions that require licenses do not put consumers at risk.
Who controls occupational licensing requirements?
Occupational licensing is a state-based policy, with each state having separate requirements even within the same profession. As a result, occupational licensing reform must be done individually by each state.
Are all occupational licenses bad?
No. Well-designed and carefully implemented occupational licenses can benefit consumers through higher-quality and safer provision of services. But many licenses create significant barriers to entry without a reasonable safety justification.