California’s new unions: the rise and wreckage of occupational licenses
Occupational licensing requirements have a widespread and deep reach in California. The Golden State ranks 7th in the nation for licensing burden, with a total of 62 low-income occupations licensed and requiring an average of 549 days of education. These licenses have cast a wide net, with one out of every five Californian’s needing to receive permission to work from the government . By restrict entry into the market occupational licenses also result in lower job growth. Specifically, licensed industries experience up to 20% lower job growth than their unlicensed counterparts. This has prevented the creation of 3 million jobs nationally, according to a study from the Upjohn Institute for Employment Research. Occupational licenses also increase wages at the cost of consumers. While we can cheer hooray for those licensed workers who now enjoy 15% higher wages, the party is ruined for consumers who now fork out an additional $203 billion a year. In fact, the increase in consumer prices in licensed industries ranges from 5% to a whopping 33%.