Economy, Monopoly, and Professional Licensing

Occupational licensing is a way the government regulates a profession for compensation. Often only market access as a self-employed is limited to licensed professionals. Occupations that can have an enormous negative impact on individuals, like physicians, public accountants, and lawyers, require occupational licenses in most nations. Many jurisdictions also compel licenses for professions without that prospect, like plumbers, taxi drivers, and electricians. Licensing creates a regulatory impediment to entry into licensed careers, resulting in higher income for those with licenses and usually higher costs for prospects. Licensing’s proponents claim that it ensures the public interest by keeping away incompetent and…...