Cato Daily Podcast

State Licensing Reform Liberates Workers

6 snips
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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INSIGHT

Universal License Recognition Grows

  • 26 states have adopted universal license recognition.
  • Three more states (Louisiana, Nebraska, Florida) passed it last year, with three more considering it.
INSIGHT

Impact of Universal Recognition

  • Licensed professionals are moving to states with universal recognition.
  • This reform increases in-migration by 48% and overall employment by 1%.
INSIGHT

Certificates of Need (CON)

  • Several states have moved away from Certificates of Need (CON), which act like institutional licenses.
  • CON laws require permission from existing businesses to open similar facilities.
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