In 1993, 15-year-old Monique
Landers who lived in a poor neighborhood of Wichita, Kansas, was a
participant in the New York-based National
Foundation for Teaching Entrepreneurship (NFTE). NFTE seeks to
introduce ghetto youngsters to the world of entrepreneurship by teaching
them to devise business plans and then helping them start a business.
Businesses operated by these youthful participants include car washing and
detailing, party magicians, stereo equipment installation, and
baby-sitting. Monique started a hair braiding business called "A
Touch of Class." She braided the hair of her friends and family for
$15 and $20 and was so successful that Monique was invited to New York
City to be honored as one of five outstanding high school entrepreneurs.
That was when her trouble started.
A local newspaper in Wichita
published the story about her award. Having read about Monique's success,
several beauty school operators and hundreds of angry hairdressers
complained to the Kansas Cosmetology Board about Monique's lack of a
license. In the name of public health and safety, the Kansas State
Cosmetology Board, issued a formal letter of warning to Monique, informing
her that it was illegal for her to touch hair for profit without a
license, and if she did not immediately cease her practice she would be
subject to a fine and/or 90 days imprisonment. While the stated motivation
for shutting down "A Touch of Class" was that of protecting
public health and safety, the real purpose was to protect the monopoly
income of practitioners. It's not a violation of Kansas law to braid hair,
per se — it becomes a violation when money is involved, therefore
threatening the incomes of the incumbent cosmetologists.
www.LimitedGovernment.org
The justification [for licensure] is always
the same: to "protect the consumer." However, the [real] reason
is demonstrated by observing who lobbies at the state legislatures for
imposition or strengthening of licensure. The lobbyists are invariably
representatives of the occupation in question rather than its customers.
Milton Friedman and Rose Friedman, Free
to Choose
(New York: Harcourt, Brace, Jovanovich, 1979), p. 240.
Do you want to be a fortune teller in Maryland? Your
future better include a license from the state. How about being a hair
braider in Mississippi? You'll need 300 to 1,500 hours of training and
government permission. Want to sell flowers in Louisiana? Only licensed
florists can do that. And almost every state requires certification if you
want to move furniture and hang art while calling yourself an interior
designer.
In California, there are a total of 177 different
jobs that require a special license or credential, the most in the
country, according to a new Reason Foundation study examining occupational
licensing trends.
Northeastern states aren't much better. Connecticut,
Maine and New Hampshire all require job seekers to obtain a license before
performing more than 130 jobs. In stark contrast, you can do most of those
very same jobs - without a license - in Missouri, where just 41 careers
require certification.
Ranking the States on Occupational Licensing
States (Number of jobs requiring a license)
| 1. California (177) |
26. Virginia (89) |
| 2. Connecticut (155) |
27. Louisiana (88) |
| 3. Maine (134) |
28. Ohio (88) |
| 4. New Hampshire (130) |
29. Georgia (85) |
| 5. Arkansas (128) |
30. Indiana (85) |
| 6. Michigan (116) |
31. Iowa (85) |
| 7. Rhode Island (116) |
32. Utah (84) |
| 8. New Jersey (114) |
33. Delaware (83) |
| 9. Wisconsin (111) |
34. Montana (79) |
| 10. Tennessee (110) |
35. Texas (78) |
| 11. Alaska (109) |
36. New York (77) |
| 12. Massachusetts (107) |
37. West Virginia (77) |
| 13. North Carolina (107) |
38. Wyoming (74) |
| 14. Oregon (107) |
39. Arizona (72) |
| 15. Vermont (107) |
40. Alabama (70) |
| 16. Florida (104) |
41. Colorado (69) |
| 17. New Mexico (104) |
42. North Dakota (69) |
| 18. Maryland (98) |
43. Mississippi (68) |
| 19. Nebraska (96) |
44. Hawaii (64) |
| 20. Minnesota (95) |
45. Pennsylvania (62) |
| 21. Nevada (95) |
46. Idaho (61) |
| 22. Illinois (93) |
47. South Carolina (60) |
| 23. Kentucky (91) |
48. Kansas (56) |
| 24. Oklahoma (91) |
49. Washington (53) |
| 25. South Dakota (90) |
50. Missouri (41) |
"Most of these licensing requirements are
completely arbitrary," said Adam B. Summers, a policy analyst at
Reason Foundation and author of the report. "You see that clearly
when examining neighboring states. California has 177 job categories
licensed. But if you take one step across the state line into Arizona just
72 careers are licensed. In North Carolina you need a license to do 107
jobs. Next door in South Carolina, only 60 jobs require
certification."
Proponents claim these licensing requirements are
needed to protect the public from unscrupulous, incompetent, or dangerous
practitioners. However, numerous studies show these laws actually reduce
consumer protection and public safety, according to the Reason Foundation
report.
"These laws are created under the guise of
'helping' consumers," Summers said. "In reality, the laws are
helping existing businesses keep out competition, restricting consumer
choice, destroying entrepreneurship, and driving up prices."
Full Report Online
The full study, Occupational Licensing: Ranking
the States and Exploring Alternatives, is available online at www.reason.org/ps361.pdf.
About Reason
Reason Foundation is a nonprofit think tank
dedicated to advancing free minds and free markets. Reason produces
respected public policy research on a variety of issues and publishes the
critically acclaimed monthly magazine, Reason. For more
information, please visit www.reason.org.
Contacts
Chris Mitchell, Director of Communications, Reason
Foundation, (310) 367-6109