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Occupational Licensing and the American Worker
Article

Occupational Licensing and the American Worker


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Editorial Rating

7

Qualities

  • Analytical
  • Innovative
  • Overview

Recommendation

The US Bureau of Labor Statistics reports that almost 25% of employed Americans in 2015 required licenses to work in their chosen occupations, up from 5% in the 1950s. In this fresh look at the US labor market, economist Ryan Nunn reports on the scope and impacts of licensing, a requirement with both negative and positive implications for individuals and the overall economy. getAbstract suggests this instructive article to employers, employees, and those looking to understand how licensing shapes the US workplace and the economy.

Take-Aways

  • In the United States, the proportion of workers who hold an occupational license has increased fivefold from the 1950s to 2015.
  • The requirement for licenses in certain lines of work can affect wages, employment opportunities and worker mobility.
  • Occupational licenses act as strict regulation, because they take substantial amounts of time or money to acquire and are necessary to protect consumers.

About the Author

Ryan Nunn is a policy director with the Hamilton Project at the Brookings Institution.