Wednesday, March 19, 2025

The Licensing Racket: How We Decide Who Is Allowed to Work, and Why It Goes Wrong

The Licensing Racket: How We Decide Who Is Allowed to Work, and Why It Goes Wrong by Rebecca Haw Allensworth

This book is a disturbing look at the current professional licensing system in the United States. Licensing has spread from the "esteemed professions" (like law and medicine) to all sorts of minor areas like hair braiding and alarm installation. The licensing schemes in general drive up the cost of entering professions, but do little to provide for public welfare. The licensing requirements often require extensive education requirements and prerequisites - many which are not needed in the practice of profession. The boards consist of practitioners. They are very active in fining and shutting down those that are practicing without a license. However, they are very slow to enforce penalties on those existing practitioners. Boards are also eager to expand their turf.

Reform has often been slow and around the margins. Some requirements for language proficiency or citizen status are reduced on lower-esteemed professions. However, the boards continue to be primarily a cartel protecting interest of those practitioners.  The author proposes a number of solutions, including expanding staff and resources. Changing boards to be made up of non-practitioners will also help. Those members of the profession could provide some expert experience, but not dominate the board.

The book gives many examples of the "failure" of boards to discipline malfescents. These anecdotes drive home the case, but may be cherry-picked. Statistics make a stronger case, though they may be hard to come by generally. How many licensees are disciplined or lose their license?  The author lives in Tennessee, so the focus was there. However, there was coverage of other places.

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