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Occupational Licensing Hurts Consumers and Limits Entrepreneurship

by Emily Washington on August 20, 2013

in Entrepreneurship, Regulation

This week I’m at U.S. News and World Reports looking at how occupational licensing hurts consumers and acts as an obstacle to new business creation. However, licensing requirements are difficult to repeal because they benefit a vested interest. In California, state policymakers were considering a bill to allow nurse practitioners to practice independently, until heavy lobbying from an organization that represents state doctors successfully resulted in a heavily amended bill.

The current political situation in California reflects the typical dynamic of occupational licensing considerations. The supporters of licensing rules often benefit from licensing because it protects them from competition. With improved technology offering greater information sharing, it is also worth questioning the effectiveness of some licensing rules. Today, the pervasion of free online reviews on nearly every service-based business provides consumers with more information about service quality than any license can convey.

The full article is available here.

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