Conor Norris and Edward Timmins: Shapiro’s licensing reforms deserve attention this election season

As we approach the finish line of the 2024 election, Pennsylvania appears to be the primary focus of both Vice President Kamala Harris and former President Donald Trump. Whoever wins this state seems very likely to win the election and therefore become the next president of the United States.

With all the attention focused on the election, some important reforms in the Keystone State are being overlooked.

First, the Shapiro administration focused on: discontinuation of licensing procedures time. These delays can sideline qualified workers and cost them time and money. This also means that consumers have fewer options in the market. Second, a license that was difficult to justify was eliminated. HB 1820 signed by Governor Josh Shapiro eliminates 300-hour period education requirement For avid braiders.

Why are these reforms important? Should we fear that Pennsylvanians are less safe now? Most of the time it’s easy to know if what we buy is good enough. We can rely on friends, recommendations, and even our own past experiences.

However, some services are different. As consumers, we cannot be sure whether the service is good or not before purchasing. For someone mowing your lawn, this isn’t a big deal. However, sometimes it can cause serious harm. Licensing laws are an attempt to solve this problem in two ways.

First of all, a person who wants to be a professional must apply to a board of professionals to obtain a license in order to practice the profession. To obtain the license, they must meet educational requirements, receive practical training and pass exams.

Second, licensing boards oversee practicing professionals. Those who fail to comply with professional standards may be penalized or even have their license revoked and their ability to practice lost.

It appears that licensing is pretty good and keeps us safe. Unfortunately, licensing laws work much better in theory than in practice. economists I can’t find evidence that licensing laws improve the quality of services consumers receive. In fact, only four of 22 studies testing the impact of licensing on quality find that licensing causes an improvement.

Even if licensing requirements fail to protect consumers, oversight by a board of expert professionals would certainly do that, right? Unfortunately, the evidence suggests otherwise. Thanks to a 2017 executive order in Idaho, we have detailed explanations of some licensing boards’ five-year disciplinary actions. Our analysis This suggests that boards are just as likely to enforce procedural requirements that are often unrelated to service quality as they are to address actual quality violations. And any disciplinary action, quality-related or not, was rare.

Licensing may not protect consumers, but it protects professionals from competition. Entry requirements that should improve quality for consumers also make it more difficult to enter the profession. This has a tangible impact on people’s decisions to enter a licensed profession. Licensing laws in general reduce the number of licensed professionals by 25%.

Consumers may not get better service from licensed professionals, but they’re paying higher prices. Because when we limit the number of professionals in a field, they can charge consumers more. Professionals who can achieve this earn more, but not because they provide better services. They gain by alienating people from the profession entirely.

What should states do based on the evidence? First, they need to contain the damage and not create new licenses. Every year, numerous licensing bills emerge in government offices across the country. States can then reduce burdensome licensing requirements to reduce the negative effects of licensing. Where licensing is unnecessary, states should eliminate licensing in favor of market competition or more targeted regulations that are more effective and less costly in protecting consumers.

The Shapiro administration deserves praise for recognizing the costs of occupational licensing and moving forward with reform. There’s more work to be done, but lawmakers and the executive branch in the Keystone State are taking significant steps to remove unnecessary barriers for workers.

Conor Norris is the assistant director and Edward Timmons is the director. Knee Center for Professional Regulation Studies at West Virginia University. Timmons is also a senior research fellow. arch bridge Institute.