Occupational Licensing and Barriers to Entry for Labor

Document Type:Essay

Subject Area:Economics

Document 1

If asked, the licensing advocates and officers will argue that this is just a way to ascertain that only competent and scrupulous professionals service the public. This however is not the case in reality as there is no evidence that the quality of service provided differs with licensing. Licensing may be away to root out the conmen from professionals but that may not always be the case. An example of this includes the licensing of unique skills that do not require special learning but rather an apprenticeship. For example, Jestine who was forced to stop her work as a hair braider on African hair only because she did not have a valid cosmetology license that was too expensive and time consuming to acquire in the first place according to the New York Times (Jacob, p1).

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There may be increase in the contractual fees like rent payments. So as to be able to survive, regulatory boards introduce new barriers to the incoming competition like the reduction in prices of products (The Economist, p3). This will not hurt them as their prices were higher than standard but will devastate the new comers as their new products will have a limited market’ In conclusion, it is evident that the introduction of operational licensing to more occupations has brought harm to low income consumers. The licensing seems to be less about the job done by an individual and more about regulations and restrictions on the consumer. It is then logical to do away with them entirely. "13711-t-iers to Case of Licensing.

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