“Reevaluating the Cost of Doing Business”

Zlojutro Consulting
The Burdensome Occupational Licensing Specification Termination Act
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“With the caveats that the literature focuses on specific examples and that quality is difficult to
measure, most research does not find that licensing improves quality or public health and safety.
. . . Stricter licensing was associated with quality improvements in only 2 out of the 12 studies
reviewed. There is also evidence that many licensing boards are not diligent in monitoring
licensed practitioners, which contributes to a lack of quality improvement under licensing.”
Obama Administration and Department of Treasury Report, Occupational Licensing: A
Framework for Policymakers, 2015.
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“[R]esults suggest that earnings are higher for the licensed occupations that require more
education and training relative to their comparison jobs. For cosmetologists and barbers, which
are low wage and low education occupations, the impact of regulation appears to be small, which
is consistent with earlier studies. [citation omitted]. For dentists, on the other hand, the impacts
for hourly wages are more than 30 percent higher. . . . Unlike unionization, where lower wage
employees appear to gain as a consequence of organizing, licensing effects appear to be larger
for higher wage workers. . . . Consequently, licensing may increase wage inequality by first
keeping out persons from entering higher wage occupations, and then by raising wages for
persons in these already high income occupations.” Kleiner, Morris, M. 2000. "Occupational
Licensing." Journal of Economic Perspectives, 14 (4): 196
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In November of 2019, the Buearu of Labor Statistics unemployment data ranked Michigan
thirty-eighth out of fifty-one states including the District of Columbia. During this period,
Michigan has the second highest unemployment rate in the Midwest, and was only two spots
higher than Ohio, which was the lowest. Bureau of Labor Statistics, Monthly Unemployment
Data; State and Local. November, 2019.
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“On average, the Great Lakes State requires 255 days of experience and training, $242 in fees,
and approximately two exams for each of those 49 occupations. Gaming supervisors, makeup
artists, painting contractors, and many others face steep fines for operating in Michigan without a
license.” Institute for Justice, License to Work: A National Study of Burdens from Occupational
Licensing, 2 Ed.
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“Patterns in occupational licensing requirements contradict the idea that licensure is primarily
used to protect public safety. Occupations that are less likely to involve risk to the public are
often more highly controlled than riskier occupations. For example, Michigan’s emergency
medical technicians (EMTs) must complete 45 days of training and pass two exams before being
licensed to work on an ambulance team. By contrast, Michigan’s sheet metal HVAC contractors
must complete 1,095 days of education and experience—24 times the amount of training
required of EMTs. Barbers, too, are subject to a full year more of training than EMTs—420 days
in total. There are other inconsistencies in Michigan’s licensing regime.” Mercatus Center at
George Mason University, The State of Occupational Licensure in Michigan, February 28, 2018.
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