The New Bazaar The Licensing Racket
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Dec 5, 2025 Rebecca Hall Allensworth, a Vanderbilt Law professor and author of "The Licensing Racket," sheds light on the often-overlooked world of occupational licensing. With nearly 30 million workers affected, she reveals how licensing boards create barriers that restrict access and inflate costs. The conversation touches on egregious cases, like addiction counseling and hair braiding, illustrating how these regulations disproportionately harm marginalized communities. Allensworth argues for narrowing licensure to protect jobs while fostering innovation and access to essential services.
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Licensing Creep Is Legal, Not Just Economic
- Occupational licensing grew slowly and became pervasive because states copied medical-style licensure over time.
- Rebecca Hall Allensworth argues the growth is driven more by legal and regulatory design than pure economics.
Boards Make The Rules, Often By Practitioners
- State practice acts create boards that interpret vague laws and set many licensing rules.
- Boards are mostly composed of volunteer practitioners, creating strong conflicts between public protection and professional interest.
Credential Ratchet Raises Costs And Scarcity
- Boards ratchet up entry requirements (education, supervised hours) citing prestige or parity with other professions.
- These increases often restrict supply without clear public-safety benefits.
