Bipartisan Support Builds for Occupational Licensing Reform

Senators on both sides of the aisle touted the benefits of reforming occupational licensing requirements at a Senate Judiciary hearing on Tuesday, saying the requirements kill jobs, increase income inequality, and reduce choice and innovation for consumers.

The number of occupations affected by licensing has increased over time, leading some to question whether certain jobs should be held to these restrictions.

“There are head-scratching examples of requiring licensure without an obvious reason,” Sen. Amy Klobuchar (D., Minn.) said. “Someone should not have to pay fees and pass a multiple-choice test to become a tour guide. Similarly, although hair braiders neither cut hair nor use chemicals, many states require them to obtain a cosmetology license.”

Research from the Institute for Justice found that in the 1950s only 5 percent of the workforce was required to obtain a license. Today, that portion has grown to 20 percent.

Sen. Mike Lee (R., Utah) said that there are a growing number of cases where licensing regulations have been expanded so far that they harm competition, leaving consumers with higher prices and less choice.

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