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Avoiding a Third Best Outcome: The White House Weighs In On Smarter Occupational Licensure

October 29, 2015  | By  | 

Occupational Licensing’s Rise to Attention

In the United States, the post-1950 expansion of the service economy fueled policies by States to license specialized skill-intensive occupations in rationally uncontested areas such as medicine and law. Subsequent progressive social reforms such as the consumer activist movement of the 60's contributed to a public panglossian view of occupational licensure as a benevolent action enacted to protect them against unscrupulous, incompetent and unsafe providers of professional services. Legislators found little political reason to constrain proposals for licensure particularly when buoyed by the fact that licensing is principally self-funded through licensing fees giving it little if any impediment from budget or appropriation constraints.