Occupational licenses are typically granted at the state level, which offers an interesting insight into these issues. If high lineament service is the primary argue for occupational licensing, in addition to so it should endure pretty piece of cake for someone who is qualified inward i state to function inward but about other state. If blocking labor marketplace position contest is the primary argue for occupational licensing, in addition to so it volition endure pretty hard for someone who is qualified inward i state to function inward but about other state. In practice, it's oft pretty hard to motion betwixt states. The Federal Trade Commission examines this number inward "Policy Perspectives: Options to Enhance Occupational License Portability" (September 2018).
The FTC cites the substantial economical literature which makes the indicate that "while licensing may growth the reward of licensees at the expense of higher prices paid yesteryear consumers, studies present that it does non meliorate quality." On the number of those amongst an trouble license working inward but about other state, the FTC notes (footnotes omitted):
"It is peculiarly hard to justify licensing-related barriers to entry when a practitioner qualified in addition to licensed yesteryear i state wishes to render identical services inward but about other state. Because licensing rules are well-nigh ever state-based, it tin halt endure hard for a qualified individual licensed yesteryear i state to move licensed inward but about other state. For but about occupations, state licensing standards vary considerably, so applicants licensed inward i state may demand additional instruction or grooming to qualify to practise inward but about other state. Even when a profession’s underlying standards are national in addition to state licensing requirements are like throughout the United States, the procedure of obtaining a license inward but about other state is oft slow, burdensome, in addition to costly. Indeed, a recent study shows that occupational licensure requirements may substantially limit the interstate mobility of licensed workers, especially for occupations amongst state-specific licensing requirements.
"State-based licensing requirements are peculiarly burdensome for licensees who render services inward to a greater extent than than i state, in addition to thus demand multistate licensing. They are equally good especially hard on armed forces families, because trailing spouses oft follow service members who are required to motion across state lines, in addition to thence must deport the fiscal in addition to administrative burdens of applying for a license inward each novel state of residence. The demand to obtain a license inward but about other state tin halt sometimes fifty-fifty Pb licensees to move out their occupations when they must motion to but about other state.
"Multistate licensing requirements tin halt equally good limit consumers’ access to services. For example, licensure requirements tin halt forbid qualified service providers from addressing time-sensitive emergency situations across a nearby state describe or block qualified wellness attention providers from providing telehealth services to consumers inward rural in addition to underserved locations."Some professions inward but about states convey addressed this issue. Some states convey joined interstate compacts so that those licenses inward i state would endure able to function i other states inward the compact: for example, such agreements be for nursing, physicians, physical therapists, in addition to others. Another approach is to write a model constabulary or dominion for occupational licenses, so that qualifying inward i state volition endure the same equally qualifying inward but about other state, an approach followed yesteryear accountants, pharmacists, in addition to but about others. Related to these options, but about states convey provisions that permit mutual recognition of for sure occupational licenses from the other state, or expedited licenses inward i state for those who already convey a like license inward but about other state.
But substantial issues remain. The canaries inward the mineshaft hither are the working spouses of those inward the military. About 35% of them function inward jobs that require occupational licenses, in addition to they are oft shifting betwixt US states every 2-4 years. Teachers, equally i mutual example, oft uncovering it hard to shift their licensing betwixt states. The US economic scheme would do goodness from greater mobility and fewer workers feeling stuck inward place.
Postscript: For those who uncovering themselves prone to dismiss anything that smacks of deregulation, especially if it arrives from a Trump/Republican administration, it's maybe worth noting that "Occupational Licensing in addition to its Discontents" (August 5, 2015).
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