Licenses to kill opportunity

More than ever, the government requires Americans to get permission to earn a living. In the 1950s, 1 in 20 workers needed a license to work; now about 1 in 4 do. The rules hurt the working poor in particular, but everyone suffers in states with the most licensing requirements, as a new and comprehensive report by the Institute for Justice illustrates.

The cost and time to obtain a license is no accident, as professional guild members sit on state licensing boards and reinforce the racket. They want to limit competition to keep prices high.

In February an Arizona board targeted a cosmetology student who dared to give free haircuts to the homeless. He risked being barred from the profession until Gov. Doug Ducey interceded.

Stiff licensing requirements are often prohibitive for America’s working poor, keeping them trapped in low-wage, low-skill jobs. Many states also bar people with a criminal record from working in a licensed profession. Society pays the price. Researchers at Arizona State University’s Center for the Study of Economic Liberty found that in states with burdensome licensing requirements, recidivism rates increased by more than 9% over a 10-year span. In states where it was easier to get a license, the rates went down.

That signals political potential for reform. Giving the poor a pathway to a dignified, self-supporting life should be a bipartisan priority.