The Hidden Costs of Professional Licensing

Licensing began with medicine and law; now it extends to 20 percent of the U.S. workforce, including hair stylists and auctioneers. In a new book, the legal scholar Rebecca Allensworth calls licensing boards “a thicket of self-dealing and ineptitude” and says they keep bad workers in their jobs and good ones out — while failing to protect the public.

• SOURCES:
  • Rebecca Allensworth, professor of law at Vanderbilt University.

• RESOURCES:
  • "The Licensing Racket: How We Decide Who Is Allowed to Work, and Why It Goes Wrong" by Rebecca Allensworth (2025).
  • "Licensed to Pill," by Rebecca Allensworth (The New York Review of Books, 2020).
  • "Licensing Occupations: Ensuring Quality or Restricting Competition?" by Morris Kleiner (W.E. Upjohn Institute for Employment Research, 2006).
  • "How Much of Barrier to Entry is Occupational Licensing?" by Peter Blair and Bobby Chung (British Journal of Industrial Relations, 2019).

• EXTRAS:
  • "Is Ozempic as Magical as It Sounds?" by Freakonomics Radio (2024).