Occupational licensing reform in Wisconsin should be bipartisan issue


** Nationally and across the states, policy-makers from both parties are supporting less burdensome licensure rules
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CONTACT: Michael Jahr, Badger Institute senior vice president, at 262-442-5208 or at [email protected] (mailto:[email protected])

By ED TIMMONS

Although a number of issues divide the citizens of Wisconsin, occupational licensing reform should not be one of them.

Eighteen percent of workers ([link removed]) in Wisconsin are licensed, but this statistic does not tell the whole story. All Wisconsin residents are forced to pay higher prices for professional services as a direct result of occupational licensing. Countless others are unable to pursue their dreams of entering a licensed occupation — the costs associated with licensing present too much of a burden. Recent estimates ([link removed]) suggest that occupational licensing nationally reduces the supply of workers by 17% to 27%.

Under the Walker administration, Wisconsin enacted significant licensing reform for barbers, cosmetologists ([link removed]) and low-income residents ([link removed]) .

In a previous commentary ([link removed]) , I noted how Wisconsin nevertheless continues to have significantly higher licensing fees for cosmetologists than bordering states.

This is not the only instance in which Wisconsin is potentially subjecting its citizens to overly burdensome occupational licensing restrictions.

Aspiring massage therapists in Wisconsin ([link removed]) have to complete 600 hours of education, pass two exams and pay $150 to the state. Bordering state Minnesota does not require state licensing and instead leaves it to individual cities to determine if they should license the profession.

Wisconsin also requires licensing ([link removed]) for vehicle salespeople. No state that borders Wisconsin requires this license.

At the national level and across the states, licensure reform is increasingly gaining bipartisan support. In fact, one of the most comprehensive reports on the effects of occupational licensing was issued by the Obama administration in the summer of 2015. The report ([link removed]) encouraged states to adopt “institutional reforms” that take into account the “costs and benefits” associated with occupational licensing.

And several Democratic governors have heeded this call.

In Virginia, a law was passed initiating a three-year pilot program ([link removed]) to reduce regulations (including occupational licensing restrictions) by 25%.

In Rhode Island, the state’s Office of Regulatory Reform reduced the number of pages of regulation by more than 30% ([link removed]) — including the elimination of 22 occupational licenses ([link removed]) . Most recently, Rhode Island eliminated ([link removed]) hair-braider licensing.

Both Montana ([link removed]) and Pennsylvania ([link removed]) have passed bills creating a pathway for all out-of-state residents to obtain licensing via endorsement.

In Colorado, Gov. Jared Polis vetoed bills ([link removed]) that would have added licensing requirements for managers of homeowner associations, genetic counselors and sports agents and expressed an interest in pursuing additional reform.

Licensing reform is an issue that everybody should be able to get behind. Even nationally, with partisan rhetoric ramping up in the 2020 Democratic presidential primary, both Joe Biden ([link removed]) and Andrew Yang ([link removed]) have noted the need to pursue occupational licensing reform.

There are a number of issues that continue to divide us, and there may not be an easy way to resolve these differences. When it comes to reforming occupational licensing, however, one’s political stripe should not matter. The stakes are simply too high for policy-makers to punt on this issue.

Ed Timmons is a visiting fellow ([link removed]) at the Badger Institute. He is a professor of economics at Saint Francis University ([link removed]) in Loretto, Pennsylvania, and director of the Knee Center for the Study of Occupational Regulation

Our Annual Dinner will be held at the Wisconsin Club in Milwaukee on October 22 with guest speaker Karl Rove. For more details visit badgerinstitute.org/Events

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