Comments on: The silver lining to occupational licensing http://blogs.reuters.com/felix-salmon/2011/02/08/the-silver-lining-to-occupational-licensing/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: bidrec http://blogs.reuters.com/felix-salmon/2011/02/08/the-silver-lining-to-occupational-licensing/comment-page-1/#comment-23868 Wed, 09 Feb 2011 19:18:58 +0000 http://blogs.reuters.com/felix-salmon/?p=7231#comment-23868 In City For Sale by Wayne Barrett and Jack Newfield the authors describe how Queens Borough President Donald Manes only used medical doctors and lawyers in his corruption schemes because they were licensed by the state. The license was effectively an affordance for Manes to manipulate them.

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By: Nick_Gogerty http://blogs.reuters.com/felix-salmon/2011/02/08/the-silver-lining-to-occupational-licensing/comment-page-1/#comment-23864 Wed, 09 Feb 2011 13:33:41 +0000 http://blogs.reuters.com/felix-salmon/?p=7231#comment-23864 the last vestige of any industry which doesn’t have real barriers to entry is credentialling or over credentialling. The climb for ever more elite degrees and certificates is a testament to the fact that many roles aren’t that speciallized.

differentiation becomes ever tougher as things get less localized and competition heats up. expect more ridiculous credentialling and licensing in the future, not less as groups seek greater self identification and protection. Sadly this will lead to more homogeneity in backgrounds and ways of thinking in many professions at exactly the same that innovation and creativity due to diverse backgrounds are called for.

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By: BLD77 http://blogs.reuters.com/felix-salmon/2011/02/08/the-silver-lining-to-occupational-licensing/comment-page-1/#comment-23862 Wed, 09 Feb 2011 05:44:21 +0000 http://blogs.reuters.com/felix-salmon/?p=7231#comment-23862 I don’t understand these last points. You describe rising inequality amongst lawyers, one of the most stringently licensed of classes, and then you say that licensing reduces inequality. This doesn’t add up. The next paragraph doesn’t add up either, and there is no evidence for it- why would an outstanding licensed or unlicensed florist not make more money than an average one? What is the basis for this kind of assertion, except your lawyer analogy which doesn’t make sense on its face?

But more importantly, as a consumer of services, I *want* inequality amongst service providers. I *want* the best people to get better and to charge more, and I want the incompetent people to drop out- not get propped up by being a licensed X. Passing moronic (and often arbitrary) government testing standards is no guarantee of quality. I know what I like in a florist, hairdresser, or anything else (and it may be different from what you like), and I am happy to exchange my money for their skill at a rate we mutually work out. Why fill the market with incompetents with people who managed to pass a test but have no knack or skill for the craft? Those people *are* unequal in terms of skill and should be paid accordingly.

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By: DrFuManchu http://blogs.reuters.com/felix-salmon/2011/02/08/the-silver-lining-to-occupational-licensing/comment-page-1/#comment-23851 Tue, 08 Feb 2011 23:10:09 +0000 http://blogs.reuters.com/felix-salmon/?p=7231#comment-23851 They are most certainly not worker protection: they raise the cost to entry of service provision, but they do not guarantee that workers reap the benefits of that economic rent.

In law, for example, requirements to practice within an established firm ensure that partners are able to appropriate the value of their employees’ labour, as their employees are not free to set up in competition.

The same is true for any system that penalises sole practice, or relatively inexperienced practitioners. These sorts of systems tend to be captured by the “leaders” who are the older, longer serving members of the profession. Unions at least tend to be democratic in some degree, reducing the ability to the elder members to leech off the younger.

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