Cato Daily Podcast
State Licensing Reform Liberates Workers
Mar 28, 2025
Ed Timmons, director of the NEI Regulatory Research Center, sheds light on how recent state reforms in occupational licensing are transforming employment landscapes. He discusses the significance of universal recognition, which enables licensed professionals to move freely across state lines, boosting labor migration. Timmons also highlights the restrictive nature of current licensing practices, particularly in healthcare, and the potential benefits of eliminating 'certificates of need' to enhance access and quality. These reforms pave the way for a more dynamic job market and improved consumer welfare.
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Quick takeaways
- The recent reforms in occupational licensing across 26 states significantly enhance worker mobility and employment opportunities by allowing licensed professionals to work across state lines.
- Eliminating Certificate of Need regulations in healthcare has led to increased access to care, improved competition, and ultimately better healthcare services for consumers.
Deep dives
Occupational Licensing Reform Trends
Many states are increasingly adopting reforms regarding occupational licensing, which require government permission for individuals to practice certain professions. As of now, 26 states have enacted some form of universal recognition, allowing professionals licensed in one state to work in another without undergoing additional licensure processes. This shift supports employment mobility and encourages licensed workers to relocate to states with more flexible licensing regulations. Examples include Louisiana, Nebraska, and Florida recently passing universal recognition, while Texas, West Virginia, and North Dakota are also considering similar reforms.
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