Rethinking the costs of Tennessee’s license to work
A proposal to de-license dozens of Tennessee professions recently failed to gain traction in the state legislature. However, it’s encouraging to see some leaders willing to fundamentally reassess occupational licensing. Every state requires licenses for some professions, with Tennessee among the most stringent. The practice costs residents more than 40,000 jobs per year and significantly limits their economic mobility.
70 years ago, 5% of workers needed a government license to do their jobs. Today, that figure has more than quadrupled. Tennessee licenses 110 separate occupations including polygraph examiners and shampoo technicians, and 21% of its workers require a piece of paper from Nashville to work.
This presents difficulties for aspiring professionals, veterans, military spouses, the formerly incarcerated, and consumers.
Proposals to remedy many of these problems have met stiff resistance. HB 1945 would make licensing requirements voluntary, with certain professionals allowed to practice without a license if customers are notified before the transaction.
The costs of excessive work licensing are well-documented
Licensing prevents willing consumers from shopping for low-cost options or patronizing new professionals who are just starting out.
It can require people of limited means to, for example, take two years off of work to become an auctioneer or one year off to become a cosmetologist before earning a living.
It prevents the formerly incarcerated, who are often excluded from licensed occupations, from working and rejoining society, turning them back to crime and increasing recidivism.
It makes things more difficult for veterans as they return home and re-enter civilian society, by preventing them from working in certain fields or using relevant military training that boards do not recognize.
And it prevents military spouses, who move more frequently than the typical American, from practicing immediately in a new state. Instead, they suffer through the licensing process over and over.
In all 50 states, professional schools and alreadylicensed professionals fight against reform. This is unsurprising considering licensing reduces competition and increases more-established professionals’ incomes by 14%. Professional schools benefit from more students enrolling.
Pro-licensing centers on consumer safety
Cosmetologists have argued that “hair cutting instruments are sharp,” “a 10-year-old could do someone’s hair under this law,” and “EMTS could see more work if cosmetology is unlicensed.”
Even when the argument is not this ludicrous, it’s important to remember that stricter standards don’t necessarily lead to better-quality services and safety.
The Obama administration’s Department of Labor found no consistent evidence that licensing improves the quality of services.
In fact, people looking for information about service professionals turn to ratings sites, not occupational licensing boards. Customer are better than ever at making informed decisions, and as it turns out, we don’t seem to care much about licensing.
One cosmetology licensing supporter noted that barbering and cosmetology are primarily female and minority owned enterprises. If anything, we should be removing barriers to female and minority entrepreneurship, not making it more difficult to start businesses and earn a living.
Licensing reform is a bipartisan issue that everyone can get behind.
Strict occupational licensing may sound good on paper, but the costs – opportunities for working people and choices for consumers – are real and affect citizens across Tennessee.
We should encourage lower barriers and healthy competition, rather than letting special interests use the law to their advantage.
Conor Norris is a research analyst and Edward Timmons is director of the Knee Center for the Study of Occupational Regulation.
TODAY'S SCRIPTURE
Qur’an, Al-qasas, Surah 28:16
He prayed: “O my Lord! I have indeed wronged my soul! Do Thou then forgive me!” So (Allah) forgave him: for He is the Oft-forgiving, Most Merciful.
Talmud
One who takes revenge due to his zealotry destroys his own house.
MALLARD FILLMORE