Over the last seventy or so years, occupational licensing requirements, or legal restrictions on who can work within a particular profession, have ballooned. These restrictions on freedom stand in need of justification, particularly in light of the concern that such restrictions simply amount to illegitimate rent- seeking. In this paper, I argue that most possible justifications face severe problems. Ultimately, I argue that the most promising line of defense for occupational licensing requirements is that some professions may require aiming at a minimum threshold of quality. The reason for this is that, in the absence of a floor for quality, there would be unacceptable social effects. This justification, if successful, is limited in scope, and would not justify many requirements currently in force.

Keep Reading What Could Justify Occupational Licensing Requirements?