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Archive for the ‘Licensing’ Category

While most of my disdain is reserved for the federal government in Washington, I periodically share horror stories about foreign governments and state governments.

And today we’re going to add to our collection of bone-headed policies by local governments.

In some past cases, the examples captured systemic flaws. In other cases, we looked at specific bad examples. Today, we have an interesting mix.

We’ll start with an example of bad policy that is easy to mock. It focuses on the predatory interventions by a town, as illustrated by this story from Alabama.

Teens in Gardendale are in for a rude awakening this summer when it comes to cutting grass. According to the city’s ordinance, you must have a business license. Teenagers have been threatened by officials…to show their city issued license before cutting a person’s lawn for extra summer cash. Cutting grass is often one of the first jobs many have in the summer. But a business license in Gardendale costs $110. And for a job, just for a couple of months, that can be a bit extreme.

What’s really disappointing about this story is that adults are ratting out the teenagers.

I can understand that they’re irked that they pay the license fee while the kids don’t, but that’s still wrong.

“One of the men that cuts several yards made a remark to one of our neighbors, ‘that if he saw her cutting grass again that he was going to call Gardendale because she didn’t have a business license,” said Campbell. …Mayor Stan Hogeland said when operating a business for pay within the city limits, you must have a business license.

Hey, Mr. Mayor, I have a better idea. Get rid of licensing rules and give freedom a try.

If your residents want to freely contract with each other, let them. Whether they’re kids or adults.

Makes me wonder if Gardendale is one of those places that puts the boot of government on the necks of kids who set up – gasp! – unlicensed lemonade stands?

If so, I imagine Daniela Earnest and Julie Murphy can offer the mayor some useful advice.

Now let’s shift to an example of local government abuse that is more troubling. And apparently more systemic.

A column in the Washington Post reveals that local governments try to make families pay if their kids wind up in the legal system, even if they’re ultimately declared not guilty of any offense.

In dozens of one-on-one meetings every week, a lawyer retained by the city of Philadelphia summons parents whose children have just been jailed, pulls out his calculator and hands them more bad news: a bill for their kids’ incarceration. Even if a child is later proved innocent, the parents still must pay a nightly rate for the detention. Bills run up to $1,000 a month… The lawyer, Steven Kaplan…is paid up to $316,000 a year in salary and bonuses, more than any city employee, including the mayor.

I haven’t given any thought to whether families should cough up money if kids are found guilty and then incarcerated.

But I find it to be outrageous that bills are sent to families when the kids are found to be not guilty.

And let’s be honest. Such a policy is not about criminal justice. It’s about figuring out new ways of pillaging people to finance bureaucracy.

To add insult to injury, most of the families are poor, so it’s very difficult to collect revenue. Indeed, very little money is collected after paying the lawyer.

Because these parents are so often from poor communities, even the most aggressive efforts to bill them seldom bring in meaningful revenue. Philadelphia netted $551,261 from parents of delinquent children in fiscal 2016.

And when you look at the consequences for poor families, it’s hard to think this is a good policy. Especially if the kid isn’t convicted of any crime!

When parents fail to pay on time, the state can send collection agencies after them, tack on interest, garnish 50 percent of their wages, seize their bank accounts, intercept their tax refunds, suspend their driver’s licenses or charge them with contempt of court.

Here’s an example from the west coast.

When Mariana Cuevas’s son was released from a California jail, after being locked up in a juvenile hall for more than 300 days for a homicide he did not commit, the boy’s public defender, Jeffrey Landau, thought his work was done. The case had been dismissed; his client was free. But at a celebratory dinner afterward, Cuevas, a Bay Area home cleaner, pulled out a plastic bag full of bills and showed Landau that the state had tried to collect nearly $10,000 for her child’s imprisonment. …In fiscal 2014-2015, Alameda County, which contains Oakland, spent $250,938 collecting $419,830 from parents. An internal county report called that “little financial gain.”

This is astounding. Trying to pillage a poor family for $10,000 when the kid didn’t commit the crime. If you care about decency and justice, this may even be worse than civil asset forfeiture.

Let’s close with another example of easy-to-mock local government.

The New York Post reports that the city is largely incapable of getting rid of incompetent teachers. So they’re paid to sit in a room and do nothing.

In one of the “reassignment centers,” 16 exiled educators sit in a city Department of Education building in Long Island City, Queens, including a dozen packed into one room — where they do virtually no work. They listen to music, do crossword puzzles, chat — and as this exclusive Post photo reveals, doze on the taxpayer’s dime. The rules forbid beach chairs and air mattresses, but not nap time. The teacher sprawled on the floor, pulled a wool hat over his eyes to shut out the fluorescent lights and slept. Others prop up two chairs to recline or just lay their heads on the table. …the city denies the existence of the derided holding pens. “There are no more rubber rooms,” DOE officials told The Post last week, saying reassigned staffers are given “administrative duties.” …The DOE refused to say how many removed teachers and other tenured staffers remain in limbo, but sources estimate 200 to 400 get paid while awaiting disciplinary hearings. Their salaries total $15 million to $20 million a year. …They mainly just kill time to get through a six-hour, 20-minute day. “I’m so exhausted from being in this place doing nothing,” one said. Several teachers on the payroll have been benched for up to five years due to a stunning bureaucratic breakdown.

Yes, this is bureaucratic breakdown.

But if you really want to understand the story behind the story, the real problem is that the unions representing government employee unions give a lot of money to politicians. Those politicians then turn around and “negotiate” contracts that provide excessive pay to regular bureaucrats and absurd protections to bad bureaucrats.

In this case, bad teachers are removed from the classroom, but it’s very difficult to fire them. So they get paid to do nothing.

P.S. Of course, that reminds me of the standard joke that most bureaucrats get paid to do nothing. There’s even a video version of that joke.

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What word best describes the actions of government? Would it be greed? How about thuggery? Or cronyism?

Writing for Reason, Eric Boehm has a story showing that “all of the above” may be the right answer.

At first it seems like a story about government greed.

When Mats Järlström’s wife got snagged by one of Oregon’s red light cameras in 2013, he challenged the ticket by questioning the timing of the yellow lights at intersections where cameras had been installed. Since then, his research into red light cameras has earned him attention in local and national media—in 2014, he presented his evidence on an episode of “60 Minutes”…on how too-short yellow lights were making money for the state by putting the public’s safety at risk.

Three cheers for Mr. Järlström. Just like Jay Beeber, he’s fighting against local governments that put lives at risk by using red-light cameras as a revenue-raising scam.

But then it became a story about government thuggery.

…the Oregon State Board of Examiners for Engineering and Land Surveying…threatened him. Citing state laws that make it illegal to practice engineering without a license, the board told Järlström that even calling himself an “electronics engineer” and the use of the phrase “I am an engineer” in his letter were enough to “create violations.” Apparently the threats weren’t enough, because the board follow-up in January of this year by officially fining Järlström $500 for the supposed crime of “practicing engineering without being registered.”

Gasp, imagine the horror of having unregistered engineers roaming the state! Though one imagines that the government’s real goal is to punish Järlström for threatening its red-light revenue racket.

But if you continue reading the story, it’s also about cronyism. The Board apparently wants to stifle competition, even if it means trying to prevent people from making true statements.

Järlström is…arguing that it’s unconstitutional to prevent someone from doing math without the government’s permission. …The notion that it’s somehow illegal for Järlström to call himself an engineer is absurd. He has a degree in electrical engineering from Sweden… it’s not the first time the Oregon State Board of Examiners for Engineering and Land Surveying has been overly aggressive…the state board investigated Portland City Commissioner Dan Saltzman in 2014 for publishing a campaign pamphlet that mentioned Saltzman’s background as an “environmental engineer.” Saltzman has a bachelor’s degree in environmental and civil engineering from Cornell University, a master’s degree from MIT’s School of Civil Engineering, and is a membership of the American Society of Civil Engineers

In other words, this is yet another example of how politicians and special interests use “occupational licensing” as a scam.

The politicians get to impose “fees” in exchange for letting people practice a profession.

And the interest groups get to impose barriers that limit competition.

A win-win situation, at least if you’re not a taxpayer or consumer.

Or a poor person who wants to get a job.

Some of the examples of occupational licensing would be funny if it wasn’t for the fact that people are being denied the right to engage in voluntary exchange.

Such as barriers against people who want to help deaf people communicate.

If you want to help a deaf person communicate in Wisconsin, you’ll have to get permission from the state government first. Wisconsin is one of a handful of states to require a license for sign language interpreters, and the state also issues licenses for interior designers, bartenders, and dieticians despite no clear evidence that any of those professions constitute a risk to public health in other states without similar licensing rules. …It’s hard to imagine any health and safety benefits to mandatory licensing for sign language interpreters, which is one of eight licenses highlighted in a new report from Wisconsin Institute of Law and Liberty, a conservative group. …Since 1996, the number of licensed professions in the Badger State has grown from 90 to 166—an increase of 84 percent, according to the report. Licensing cost Wisconsin more than 30,000 jobs over the last 20 years and adds an additional $1.9 billion annually in consumer costs.

Or restricting the economic liberty of dog walkers.

…according to the Colorado government, people who watch pets for money are breaking the law unless if they can get licensed as a commercial kennel—a requirement that is costly and unrealistic for people working out of their homes, often as a side job. This is not simply a case of an outdated law failing to accommodate modern technology. There are more nefarious motives—those of special interests who want to protect their profits by keeping out new competition. …it is time to add “Big Kennel” to the list of special interests that support ridiculous occupational licensing schemes.

Or trying to deny rights, as in the case of horse masseuses.

…an Arizona state licensing board finally backed down from an expensive, unnecessary mandate that nearly forced three women to give up their careers as animal masseuses. …the Arizona State Veterinary Medical Examining Board said it would no longer require animal massage practitioners, who provide therapeutic services to dogs, horses, and other animals, to obtain a veterinary license. Obtaining that license requires years of post-graduate schooling, which can cost as much as $250,000. “All I want is the freedom to do my job, and I have that now,” Celeste Kelly, one of three plaintiffs in the lawsuit, said in a statement. …the state board tried to driver her out of business by threatening her with fines and jail time if she didn’t get a veterinary license.

The good news is that there’s a growing campaign to get rid of these disgusting restrictions of voluntary exchange.

The acting head of the Federal Trade Commission is getting involved. On the right side of the issue!

Maureen K. Ohlhausen, the new acting chair of the Federal Trade Commission, thinks it’s high time that the FTC start giving more than lip service to its traditional mandate of fostering economic liberty. And the first item in her crosshairs is the burgeoning growth in occupational licenses. Over the past several decades, licensing requirements have multiplied like rabbits, she noted. Only 5 percent of the workforce needed a license in 1950, but somewhere between one-quarter and one-third of all American workers need one today. …depending on where you live, you might need a license to be an auctioneer, interior designer, makeup artist, hair braider, potato shipper, massage therapist or manicurist. “The health and safety arguments about why these occupations need to be licensed range from dubious to ridiculous,” Ohlhausen said. “I challenge anyone to explain why the state has a legitimate interest in protecting the public from rogue interior designers carpet-bombing living rooms with ugly throw pillows.”

Hooray for Ms. Ohlhausen. She’s directing the FTC to do something productive, which is a nice change of pace for a bureaucracy that has been infamous in past years for absurd enforcement of counterproductive antitrust laws.

A column in the Wall Street Journal highlights Mississippi’s reforms.

State lawmakers in Mississippi are taking the need for reform to heart. Two weeks ago Gov. Phil Bryant signed into law H.B. 1425, which will significantly rein in licensing boards. …H.B. 1425 explicitly endorses competition and says that the state’s policy is to “use the least restrictive regulation necessary to protect consumers from present, significant and substantiated harms.” Under the law, the governor, the secretary of state, and the attorney general must review and approve all new regulations from professional licensing boards to ensure compliance with the new legal standard. This should be a model for other states. …Mississippi’s law…covers all licensing boards controlled by industry participants, spells out a pro-competition test, and requires new rules to be approved by elected officials accountable to voters. Mississippi has smartly targeted the core problem: Anticompetitive regulations harm the economy, slow job growth, and raise consumer prices.

Here’s some of the national data in the WSJ column.

Keep in mind, as you read these numbers, that poor people disproportionately suffer as a result of these regulatory barriers to work.

In the 1950s only about 1 in 20 American workers needed a license, but now roughly 1 in 4 do. This puts a real burden on the economy. A 2012 study by the Institute for Justice examined 102 low-income and middle-income occupations. The average license cost $209 and required nine months of training and one state exam. …Even the Obama administration saw the problem. A 2015 report from the White House said that licensing can “reduce employment opportunities and lower wages for excluded workers.” In 2011 three academic economists estimated that these barriers have result in 2.85 million fewer jobs nationwide, while costing consumers $203 billion a year thanks to decreased competition.

Professor Tyler Cowen explains in Time that licensing laws explain in part the worrisome decline in mobility in America.

Some of the decline in labor mobility may stem from…the growth of occupational licensure. While once only doctors and medical professionals required licenses to practice, now it is barbers, interior decorators, electricians, and yoga trainers. More and more of these licensing restrictions are added on, but few are ever taken away, in part because the already licensed established professionals lobby for the continuation of the restrictions. In such a world, it is harder to move into a new state and, without preparation and a good deal of investment, set up a new business in a licensed area.

Last but not least, we have a candidate for the Bureaucrat Hall of Fame. Elizabeth Nolan Brown explains for Reason that a paper pusher in Florida managed to use occupational licensing fees as a tool of self-enrichment.

In Palm Beach County, Florida, all topless dancers are required to register with county officials and obtain an Adult Entertainment Work Identification Card (AEIC), at the cost of $75 per year. The regulation is ridiculous for a lot of reasons, but at least applicants—many of whom are paid exclusively in cash—were able to pay the government-ID fee with cash, too, making things a little more convenient and a little less privacy-invading. But not anymore, thanks to the alleged actions of one sticky-fingered government employee. …Pedemy “diverted” at least $28,875 (and possibly an additional $3,305) from county coffers between October 2013 and mid-November 2016. The money came from both adult-entertainer fees—approximately 70 percent of which were paid in cash—and court-ordered payments intended for a crime Victims Services Fund.

At the end of the article, Ms. Brown looks at the bigger issue and asks what possible public purpose is being served by stripper licensing.

Demanding strippers be licensed in the first place is a problem… There’s no legitimate public-safety or consumer-protection element to the requirement—strip club patrons don’t care if the woman wriggling on their laps is properly permitted. Government officials have portrayed the measure as a means to stop human trafficking and the exploitation of minors, but that’s ludicrous; anyone willing to force someone else into sex or labor and circumvent much more serious rules with regard to age limits isn’t going to suddenly take pause over an occupational licensing rule they’ll have to skirt. The only ones truly affected are sex workers and adult-business owners. Not only does the regulation drive up their costs…, it gives Palm Beach regulators a database of anyone who’s ever taken their clothes off for money locally—leaving these records open to FOIA requests or hackers—and gives cops a pretense to check clubs at random to make sure there aren’t any unlicensed dancers. Those found to be dancing without a license can be arrested on a misdemeanor criminal charge.

Though I guess we shouldn’t be too surprised. If you peruse “Sex and Government,” you’ll find that politicians and bureaucrats like to stick their noses in all sorts of inappropriate places. Including the vital state interest of whether topless women should be allowed to cut hair without a license!

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What federal program is most sacrosanct, even though it delivers poor results?

Those are all good answers, and you could also add housing subsidies, the drug war, and lot of other example to the list of programs that enjoy lots of political support even though they produce bad results.

But I’m guessing that the activity that has the greatest level of undeserved support is government intervention for “pre-K” kids, with Head Start being the most prominent example.

I haven’t written about the failure of that particular program since 2013, which is unfortunate because two of the most compelling visuals about Head Start were released in 2014.

First, this AEI research reveals that the supposed academic consensus for the program evaporates under close examination.

Second, this table from an article in National Affairs shows that the program doesn’t produce long-run benefits.

Yet these empirical results don’t seem to influence the debate. Every year, programs such as Head Start get funded because politicians only seem to care about intentions.

And positive headlines for themselves, of course. After all, we’re supposed to believe that they care about kids because they spend other people’s money on programs with nice goals.

With this as background, now let’s zoom in on a specific example of how supposedly good intentions in this field translate into occupational restrictions that have very bad results for the less fortunate people in society.

The Washington Post reports that the city’s local government has decided that additional regulation is needed to boost the quality of programs for pre-K kids.

More than a decade after Washington, D.C., set out to create the most comprehensive public preschool system in the country, the city is directing its attention to overhauling the patchwork of programs that serve infants and toddlers.  The new regulations put the District at the forefront of a national effort to improve the quality of care and education for the youngest learners. City officials want to address an academic achievement gap between children from poor and middle-class families that research shows is already evident by the age of 18 months.

And what exactly did the city government propose to achieve these nice-sounding goals?

They’ve imposed “new licensing regulations…for child-care centers” that will mandate college degrees.

The District set the minimum credential for lead teachers as an associate degree… The deadline to earn the degree is December 2020. New regulations also call for child-care center directors to earn a bachelor’s degree and for home care providers and assistant teachers to earn a CDA.

Gee, this sounds nice. Don’t we all want the best-trained staff so that we can get the best outcomes for kids?

Yes, but let’s consider costs and benefits. Especially, as noted in the article, costs that are imposed on people without a lot of money who are working at childcare centers.

…for many child-care workers, often hired with little more than a high school diploma, returning to school is a difficult, expensive proposition with questionable reward. …prospects are slim that a degree will bring a significantly higher income — a bachelor’s degree in early-childhood education yields the lowest lifetime earnings of any major.

And poor people without a lot of money who are clients of childcare centers.

Many parents in the District are maxed out, paying among the highest annual tuitions nationally, at $1,800 a month.

And taxpayers who pick up part of the cost.

…government subsidies that help fund care…and generous funding for preschool.

In other words, imposing this kind of mandate will be rather expensive, especially for lower-income Washingtonians who either work at these centers of send their children to them.

That’s the cost side of the equation. Now let’s look at the benefits.

Except there’s no real-world evidence included in the article. Instead, all we get it some theorizing.

…a 2015 report by the National Academies that says the child-care workforce has not kept pace with the science of child development and early learning. From the first days of life, learning is complex and cumulative, the report says. Infants are capable of abstract thought, forming theories about what is happening in the physical world and whom to trust. Scientists concluded that teachers need the skills and insight to offer the kinds of learning experiences that challenge them and make them feel safe. They need tools to diagnose and intervene when they see learning or emotional problems. And they need literacy skills to introduce young learners to an expansive vocabulary, exposure many children do not have at home and are not getting in day care.

Scott Shackford of Reason is appropriately skeptical about this regulatory scheme.

Scientists say that higher education for pre-school child-care workers is a good idea. So of course D.C. is going to make it mandatory that child-care workers get associate’s degrees and completely screw over an entire class of lower-skilled workers. …The news story doesn’t engage in the question of why parents can’t decide for themselves how important it is for their child-care workers to have advanced degrees. Perhaps that’s because early education advocates might not like the answers, once the realities of the likely cost increases get factored in. …such a subsidy plan would not do much for lower-income families. And so not only would poorer families be even less able to afford child care, they’re also going to be locked out of jobs within the industry itself.

Though he does identify one group that would benefit.

To be sure, this D.C. law is a jobs program—it’s a jobs program for people who work in the field of post-secondary education itself. Nothing like using a regulatory mandate to create a demand for your educational services that might not exist otherwise. The story makes it abundantly clear that advocates for increased education of child-care workers—who, wouldn’t you know it, work in the field of education—want to spread this program well beyond D.C.’s borders.

And there’s another group of beneficiaries. The new DC regulations will be good news for childcare workers who already have college degrees. That’s because the city government is using a form of licensing to force competing workers out of the market (as Scott pointed out, the new rules “screw over…lower-skilled workers”). And that means that the college-educated workers will have more ability to extract higher salaries.

Just as unions urge higher minimum-wage mandates in order to undermine competition from other workers.

In other words, this is a classic “public choice” case study of a couple of interest groups using government coercion to unfairly line their pockets.

P.S. Speaking of public choice, here’s the real-world explanation of how a bill becomes law (h/t: Imgur).

Very accurate. I especially like the variation of Mitchell’s Law at the end.

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Red tape is a huge burden on the American economy, with even an Obama Administration bureaucracy acknowledging that costs far exceed supposed benefits.

And the problem gets worse every year.

If I had to pick the worst example of foolish regulation, there would be lots of absurd examples from the federal government, and the crazy bureaucrats at the Equal Employment Opportunity Commission probably would be at the top of the list.

But the worst regulations, at least if measured by the harm to lower-income Americans, probably are imposed by state governments. Yes, I’m talking about the scourge of occupational licensing.

A report published by The American Interest elaborates on this problem.

…it’s important that policymakers don’t lose sight of more subtle ways the government has distorted the economy to favor the politically connected. One example: Onerous occupational licensing laws that force people to undergo thousands of hours of often redundant and gratuitous training to perform jobs like auctioneering, tree trimming, and hair styling. …licensing laws are the result of higher-skilled professionals seeking to protect their market share at the consumers’ expense. …This not just a minor concern for a few key industries; it is a weight dragging down the entire economy, raising prices while blocking access to less-skilled trades. The Obama administration has already recommended that states look at ways to loosen these requirements.

Yes, you read correctly. This is an issue where the Obama Administration was basically on the right side.

I’m not joking. Here are excerpts from a White House statement last year.

Today nearly one-quarter of all U.S. workers need a government license to do their jobs. The prevalence of occupational licensing has risen from less than 5 percent in the early 1950s with the majority of the growth coming from an increase in the number of professions that require a license rather than composition in the workforce. …the current system often requires unnecessary training, lengthy delays, or high fees. This can in turn artificially create higher costs for consumers and prohibit skilled American workers like florists or hairdressers from entering jobs in which they could otherwise excel.

Senator Mike Lee of Utah is a strong advocate of curtailing these protectionist regulations and allowing capitalism to flourish. Using teeth-whitening services as an example, he explained the downside of government-enforced cartels in an article for Forbes.

Should only dentists be allowed to whiten people’s teeth? …This may sound like a silly question… Keep in mind that the Food and Drug Administration already regulates teeth-whitening products for safety and that virtually no one has ever been injured by someone administering these products. But in a number of states throughout the country, dentists began losing teeth-whitening customers to non-dentists who had set up kiosks in shopping malls and were charging less money for the same teeth-whitening services. These upset dentists then went to their state dental-licensing boards and urged those boards to add teeth whitening to the definition of “the practice of dentistry.” These state boards complied… The results were unemployed teeth whiteners, more expensive teeth whitening, and higher profits for the dentists. …An organized cartel (the dentists)…used the threat of government punishment to enforce their monopoly.

Unfortunately, Senator Lee explains, this is a problem that goes way beyond teeth whitening.

…when the deeper question of occupational licensing is applied to the broader economy, it turns out that there are millions of jobs and hundreds of billions of dollars at stake. …dentists are not the only professionals using government power to harm consumers and line their pockets. A 2013 study found that 25% of today’s workforce is in an occupation licensed by a state entity, up from just 5% in 1950. And the number of licensed professionals is not growing because everyone is suddenly becoming a doctor or a lawyer. Instead, it is the number of professions requiring licenses that is growing. Security guards, florists, barbers, massage therapists, interior decorators, manicurists, hair stylists, personal trainers, tree trimmers and auctioneers work in just some of the many, many professions that state legislatures have seen fit to cartelize.

But do consumers get some sort of benefit as a result of all this red tape?

Nope.

According to a study by University of Minnesota Professor Morris Kleiner, “Occupational licensing has either no impact or even a negative impact on the quality of services provided to customers by members of the regulated occupation.” Occupational licensing has grown not because consumers demanded it, but because lobbyists recognized a business opportunity where they could use government power to get rich at the public’s expense. …Consumers end up paying $200 billion in higher costs annually, prospective professionals lose an estimated three million jobs, and millions more Americans find it harder to live where they want due to licensing requirements.

By the way, the barriers to mobility are a major problem. A professor at Yale Law School crunched the numbers and found that occupational licensing has undermined the great America tradition of moving where the jobs are.

Here are some details from the abstract of the study.

Rates of inter-state mobility, by most estimates, have been falling for decades. Even research that does not find a general decline finds that inter-state mobility rates are low among disadvantaged groups and are not increasing despite a growing connection between moving and economic opportunity. …governments, mostly at the state and local levels, have created a huge number of legal barriers to inter-state mobility. Land-use laws and occupational licensing regimes limit entry into local and state labor markets.

In an article for Reason, Ronald Bailey highlights some of the key findings from the scholarly study.

From the end of World War II through the 1980s, the Census Bureau reports, about 20 percent of Americans changed their residences annually, with more than 3 percent moving to a different state each year. Now more are staying home. In November, the Census Bureau reported that Americans were moving at historically low rates: Only 11.2 percent moved in 2015, and just 1.5 percent moved to a different state. …Yale law professor David Schleicher blames bad public policy. …Schleicher identifies and analyzes the policies that limit people’s ability to enter job-rich markets and exit job-poor ones. …Why? First, lots of job-rich areas have erected barriers that keep job-seekers from other regions out. The two biggest barriers are land use and occupational licensing restrictions. …Schleicher notes that more than 1,100 occupations require licensing in at least one state, but fewer than 60 are regulated in all states. A 2015 White House report on occupational licensing found that “interstate migration rates for workers in the most licensed occupations are lower by an amount equal to nearly 15 percent of the average migration rate compared to those in the least licensed occupations.”

Let’s close by putting this in practical terms.

Imagine you don’t have a lot of education. And you definitely don’t have out-of-state licenses that are necessary for dozens of professions.

Are you going to move where there are more jobs?

Several decades ago, the answer likely was yes. Now, the incentive for mobility has been curtailed thanks to licensing laws that are really nothing more than regulatory protectionism.

Such laws should be repealed, or struck down by the courts as illegal restraints on trade.

P.S. Here’s some dark libertarian humor on this topic.

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