Occupational licensing restricts entry into professions from "summary" of Free to Choose by Milton Friedman
Occupational licensing is a common practice in many professions, requiring individuals to obtain a license before they can legally practice. While the justification for licensing is often based on the need to protect consumers from harm, it can also have the unintended consequence of restricting entry into professions. Licensing can create barriers to entry by setting high educational or training requirements, which can be costly and time-consuming to meet. These requirements can make it difficult for individuals with limited resources or time to enter a profession, thereby limiting competition and potentially leading to higher prices for consumers. Furthermore, the process of obtaining a license can be lengthy and bureaucratic, further deterring individuals from pursuing a career in a licensed profession. This can be especially burdensome for individuals who may have valuable skills or experience but lack the formal education or training required for a license. In addition, licensing can also create a system of rent-seeking, where established professionals use their influence to restrict competition and maintain their privileged position in the market. This can stifle innovation and prevent new ideas and approaches from entering a profession, ultimately harming consumers who may benefit from a more dynamic and competitive market.- While occupational licensing may have legitimate purposes in some cases, it is important to consider the unintended consequences of restricting entry into professions. By reevaluating the necessity and impact of licensing requirements, we can ensure that individuals have the freedom to pursue their chosen professions without unnecessary barriers.
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