The Impact of Occupational Licensing on Economic Performance

Occupational licensing significantly hampers economic performance, with states enacting more licenses over time. Historically, only one in ten occupations were licensed, but that number has increased to about one in three. This growth in regulation often restricts competition and keeps individuals out of the job market, thus limiting economic opportunities. For example, Texas licenses 199 out of 284 examined occupations, the highest in the study, while Kansas licenses only 136, illustrating the stark differences in regulatory approaches across states.