A License for Protection

While other labor market institutions have been in decline for decades, occupational licensing has grown dramatically. This is the product of the great benefits that licensing brings to both license-holders and the government. Members of a licensed occupation benefit because they increase the perception of quality and thus the demand for their services, while at the same time they restrict supply. Government officials benefit from the electoral and monetary support of the regulated, as well as the public image that they are protecting consumers. However, for the public, occupational licensure has many costs and few benefits