Do pet sitters really need a license? How occupational licenses are hurting the economy


“Licensing creates a fence that people trying to get into that occupation have to climb over, while, at the same time, protecting people within the fence who are already practicing the occupation.” [Source Image: totallyout/iStock]

In New York City, you need a license to pet-sit someone’s dog (at least if you want to be paid). In Louisiana, you need a license to become a florist. Nine states require funeral attendants to be licensed before starting work.

License regimes emerge when states, cities, counties or the federal government regulate an activity, often in the interest of public safety. New York’s pet-sitting law, which requires licensees to buy insurance and use designated kennels, is meant to “ensure [the] health and safety of pets and reduce risks to public health,” the city’s Health Department says (though it very rarely enforces the regulation).

“Licensing creates a fence that people trying to get into that occupation have to climb over, while, at the same time, protecting people within the fence who are already practicing the occupation, who would have to compete against them,” said Jason Wiens, policy director at the Kauffman Foundation, an entrepreneurship-focused think tank. “It’s an anticompetitive practice that has negative barriers to entrepreneurship.”

The effect is felt strongly by low-income workers, according to a study by Stephen Slivinski, a senior research fellow at Arizona State University. He finds that states with the most licensing requirements on low-income jobs tend to have the fewest opportunities for low-income workers. Louisiana, Oregon, and Mississippi have the most of these requirements, he says; Vermont, South Dakota, and Ohio have the fewest. In a 2012 report, the Institute of Justice looked at the requirements on 102 low- or moderate-licensed jobs. On average, they required nine months of training, at least one exam, and the payment of $209 in fees.

Article source: Fast Company

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