Occupational licenses are typically granted at the Earth level, which offers an interesting insight into these issues. If high character service is the primary argue for occupational licensing, too so it should travel pretty piece of cake for someone who is qualified inward 1 Earth to travel inward about other state. If blocking labor marketplace contest is the primary argue for occupational licensing, too so it volition travel pretty hard for someone who is qualified inward 1 Earth to travel inward about other state. In practice, it's frequently 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 signal that "while licensing may increase the reward of licensees at the expense of higher prices paid yesteryear consumers, studies exhibit that it does non better quality." On the number of those amongst an trouble license working inward about other state, the FTC notes (footnotes omitted):
"It is especially hard to justify licensing-related barriers to entry when a practitioner qualified too licensed yesteryear 1 Earth wishes to furnish identical services inward about other state. Because licensing rules are nigh ever state-based, it tin destination travel hard for a qualified somebody licensed yesteryear 1 Earth to travel licensed inward about other state. For about occupations, Earth licensing standards vary considerably, so applicants licensed inward 1 Earth may demand additional teaching or grooming to qualify to exercise inward about other state. Even when a profession’s underlying standards are national too Earth licensing requirements are like throughout the United States, the procedure of obtaining a license inward about other Earth is frequently slow, burdensome, too costly. Indeed, a recent study shows that occupational licensure requirements may substantially trammel the interstate mobility of licensed workers, especially for occupations amongst state-specific licensing requirements.
"State-based licensing requirements are especially burdensome for licensees who furnish services inward to a greater extent than than 1 state, too thus demand multistate licensing. They are besides especially hard on military machine families, because trailing spouses frequently follow service members who are required to motion across Earth lines, too thus must deportment the fiscal too administrative burdens of applying for a license inward each novel Earth of residence. The demand to obtain a license inward about other Earth tin destination sometimes fifty-fifty Pb licensees to travel out their occupations when they must motion to about other state.
"Multistate licensing requirements tin destination besides trammel consumers’ access to services. For example, licensure requirements tin destination preclude qualified service providers from addressing time-sensitive emergency situations across a nearby Earth line or block qualified wellness attention providers from providing telehealth services to consumers inward rural too underserved locations."Some professions inward about states accept addressed this issue. Some states accept joined interstate compacts so that those licenses inward 1 Earth would travel able to travel i other states inward the compact: for example, such agreements be for nursing, physicians, physical therapists, too others. Another approach is to write a model police describe or dominion for occupational licenses, so that qualifying inward 1 Earth volition travel the same equally qualifying inward about other state, an approach followed yesteryear accountants, pharmacists, too about others. Related to these options, about states accept provisions that permit mutual recognition of surely occupational licenses from the other state, or expedited licenses inward 1 Earth for those who already accept a like license inward 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 travel inward jobs that require occupational licenses, too they are frequently shifting betwixt US states every 2-4 years. Teachers, equally 1 mutual example, frequently detect 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 detect themselves prone to dismiss anything that smacks of deregulation, especially if it arrives from a Trump/Republican administration, it's perchance worth noting that "Occupational Licensing too its Discontents" (August 5, 2015).
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