fbpx

Institute for Justice

At What Cost

Home »

Not only do state occupational licensing laws force people to spend a lot of time and money earning a license instead of earning a living, they also impose real economic costs. This study takes advantage of a uniquely large dataset to offer the first state-level estimates of licensing’s economic costs for 36 states, as well as new national estimates. It also confirms earlier research demonstrating considerable growth in licensing since the 1950s.

Key findings include:

  • States vary widely in the share of workers licensed, from 14 percent in Georgia to 27 percent in Nevada. At the national level, nearly 20 percent of workers are now licensed, up from just 5 percent in the early 1950s.
  • Nationally, licensing costs the economy nearly 2 million jobs annually. In the states, licensing’s toll on jobs ranges from around 7,000 (Rhode Island) to nearly 196,000 (California).
  • By a conservative measure of lost economic value, licensing may cost the national economy $6 billion. However, a broader and likely more accurate measure suggests the true cost may reach $184 billion or more. At the state level, the broader measure finds losses ranging from $675 million (Rhode Island) to over $22 billion (California).

Licensing likely leads to these losses because it restricts competition, effectively giving licensed workers a monopoly. With fewer competitors, licensees can charge more for their services. Consumers and the wider economy pay the price.

The costs of licensing are substantial, and it seems likely, given ample prior research showing licensing rarely improves consumer outcomes, that they outweigh any purported benefits. Eliminating needless licensing burdens—and, if necessary, replacing them with less restrictive alternatives—would likely result in a win–win for workers and consumers.

Click here to watch a video about the high cost of occupational licensing.

DOWNLOAD
Executive Summary
Introduction
The Costs of Occupational Licensing
Methods
Results
Conclusion
Appendix

Click a state to see its full results.

Washington, D.C.

Alabama

18% of workers licensed

38th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed18.11%
Workers Certified3.36%
Workers Unionized9.48%
State-Level Economic Costs of Licensing
Estimated Jobs Lost20,967
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$56.1
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$1,879.2
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		12.30%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male18.6%2.9%78.4%262
Female17.5%3.9%78.6%311
Education Level
Less than High School6.3%0.0%93.7%33
High School10.4%1.6%88.0%149
Some College17.7%4.1%78.2%210
College22.3%3.8%73.9%114
College+36.8%6.2%57.0%67
Earnings
Average Hourly Earnings$23.47$19.96$17.81573
Race
White20.5%3.4%76.1%368
Hispanic4.8%4.8%90.3%20
Black10.7%3.3%86.0%151
Other25.2%3.1%71.7%34
Age
≤258.6%2.9%88.5%61
26–5419.6%4.1%76.2%359
55+19.0%1.5%79.6%153
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Alaska

18% of workers licensed

34th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed18.40%
Workers Certified7.15%
Workers Unionized14.28%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male19.2%10.5%70.3%105
Female17.5%3.3%79.2%141
Education Level
Less than High School0.0%0.0%100.0%5
High School4.8%3.6%91.6%31
Some College11.8%9.2%79.0%80
College36.5%7.4%56.0%72
College+43.5%7.3%49.2%58
Earnings
Average Hourly Earnings$32.82$24.26$23.89246
Race
White21.1%8.0%70.9%185
Hispanic34.8%0.0%65.2%5
Black39.1%0.0%60.9%3
Other10.2%5.9%83.8%53
Age
≤252.7%2.7%94.6%24
26–5423.9%7.8%68.3%154
55+16.9%8.9%74.2%68
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Arizona

19% of workers licensed

24th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed19.14%
Workers Certified5.35%
Workers Unionized5.83%
State-Level Economic Costs of Licensing
Estimated Jobs Lost29,224
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$85.2
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$2,831.2
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		12.41%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male17.6%5.2%77.2%440
Female21.0%5.5%73.5%432
Education Level
Less than High School4.6%0.0%95.4%64
High School9.3%7.7%83.0%181
Some College18.0%4.1%77.9%331
College22.6%5.7%71.7%197
College+39.2%8.3%52.6%99
Earnings
Average Hourly Earnings$25.39$21.82$21.10872
Race
White22.2%5.9%71.9%537
Hispanic12.7%4.3%83.0%230
Black20.6%5.1%74.3%43
Other17.6%4.8%77.6%62
Age
≤258.8%4.6%86.7%127
26–5420.0%5.0%74.9%568
55+23.5%6.9%69.6%177
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Arkansas

20% of workers licensed

18th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed20.07%
Workers Certified5.75%
Workers Unionized3.69%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male17.8%3.7%78.4%197
Female22.6%8.0%69.3%227
Education Level
Less than High School20.8%0.0%79.2%29
High School11.6%3.5%84.9%100
Some College17.3%6.6%76.1%137
College23.0%7.2%69.8%94
College+53.0%10.2%36.8%64
Earnings
Average Hourly Earnings$22.32$19.53$17.84424
Race
White20.0%6.3%73.8%323
Hispanic27.1%6.6%66.3%18
Black15.4%4.8%79.9%60
Other25.5%0.0%74.5%23
Age
≤2512.7%1.9%85.3%52
26–5421.7%6.2%72.1%280
55+21.3%7.4%71.2%92
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

California

17% of workers licensed

46th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed17.19%
Workers Certified4.82%
Workers Unionized17.27%
State-Level Economic Costs of Licensing
Estimated Jobs Lost195,917
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$840.4
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$22,067.5
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		15.84%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male16.1%4.2%79.7%1,594
Female18.5%5.6%75.9%1,480
Education Level
Less than High School3.0%1.5%95.5%336
High School7.3%2.0%90.7%637
Some College17.7%5.6%76.7%1,048
College20.5%5.9%73.6%680
College+35.5%7.1%57.3%373
Earnings
Average Hourly Earnings$30.17$25.47$21.083,074
Race
White22.0%6.3%71.7%1,322
Hispanic10.9%3.5%85.6%1,110
Black16.6%5.8%77.6%156
Other18.1%3.3%78.6%486
Age
≤256.6%2.9%90.5%460
26–5417.4%4.9%77.7%2,019
55+24.5%5.9%67.6%595
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Colorado

18% of workers licensed

44th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed17.58%
Workers Certified5.41%
Workers Unionized5.87%
State-Level Economic Costs of Licensing
Estimated Jobs Lost57,410
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$374.7
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$5,675.9
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		28.27%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male16.4%6.5%77.1%303
Female18.9%4.2%76.9%316
Education Level
Less than High School5.9%2.7%91.4%30
High School10.1%0.8%89.1%103
Some College18.1%8.0%73.9%207
College16.9%4.5%78.6%164
College+29.9%6.8%63.3%115
Earnings
Average Hourly Earnings$28.47$33.44$21.54619
Race
White19.0%6.6%74.4%494
Hispanic10.7%2.3%87.0%59
Black14.3%3.7%82.0%27
Other17.5%0.0%82.5%39
Age
≤257.5%5.9%86.5%78
26–5418.1%4.9%76.9%384
55+22.3%6.6%71.2%157
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Connecticut

22% of workers licensed

10th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed21.54%
Workers Certified6.65%
Workers Unionized16.78%
State-Level Economic Costs of Licensing
Estimated Jobs Lost48,105
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$404.5
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$6,341.9
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		27.25%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male21.8%7.0%71.1%263
Female21.2%6.3%72.5%286
Education Level
Less than High School4.9%0.0%95.1%16
High School13.1%6.0%80.9%102
Some College18.8%9.1%72.1%170
College18.4%5.0%76.6%146
College+41.7%6.1%52.2%115
Earnings
Average Hourly Earnings$37.75$35.12$25.35549
Race
White22.9%5.9%71.2%438
Hispanic14.2%14.0%71.7%46
Black13.1%6.3%80.5%37
Other27.0%4.1%68.9%28
Age
≤2511.0%7.5%81.5%67
26–5423.0%6.7%70.3%335
55+22.7%6.1%71.2%147
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Delaware

15% of workers licensed

2nd lowest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed15.15%
Workers Certified8.73%
Workers Unionized12.96%
State-Level Economic Costs of Licensing
Estimated Jobs Lost7,291
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$63.7
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$1,171.0
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		23.00%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male14.4%9.9%75.7%98
Female15.9%7.6%76.5%151
Education Level
Less than High School0.0%0.0%100.0%7
High School15.3%0.0%84.7%45
Some College6.3%10.6%83.1%70
College10.1%5.1%84.9%76
College+23.1%14.3%62.6%51
Earnings
Average Hourly Earnings$44.91$23.19$25.78249
Race
White16.0%10.0%74.0%181
Hispanic6.2%11.6%82.3%16
Black12.2%8.0%79.9%41
Other29.9%0.0%70.1%11
Age
≤250.0%13.7%86.3%20
26–5416.0%7.8%76.2%169
55+20.0%10.2%69.7%60
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

District of Columbia

19% of workers licensed

28th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed18.89%
Workers Certified4.52%
Workers Unionized8.83%
Note: Economic costs were not calculated for the District of Columbia as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male17.9%5.7%76.4%31
Female19.9%3.3%76.8%41
Education Level
Less than High School0.0%25.8%74.2%2
High School0.04%0.0%100.0%10
Some College22.7%9.8%67.5%24
College26.9%0.0%73.1%23
College+28.0%1.9%70.2%13
Earnings
Average Hourly Earnings$34.17$25.87$33.6272
Race
White16.9%0.4%82.7%32
Hispanic0.0%0.0%100.0%1
Black5.4%16.5%78.2%35
Other93.4%0.0%6.6%4
Age
≤250.0%0.0%100.0%16
26–5424.5%6.0%69.5%41
55+21.4%4.5%74.1%15
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Florida

21% of workers licensed

14th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed21.13%
Workers Certified4.39%
Workers Unionized6.56%
State-Level Economic Costs of Licensing
Estimated Jobs Lost129,254
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$459.9
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$11,587.8
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		16.53%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male18.7%4.6%76.7%737
Female23.7%4.2%72.1%828
Education Level
Less than High School10.1%0.0%89.9%94
High School9.4%2.0%88.6%367
Some College21.5%5.4%73.1%581
College26.7%3.9%69.4%345
College+39.7%9.2%51.1%178
Earnings
Average Hourly Earnings$24.12$19.63$17.881,565
Race
White23.1%5.1%71.7%936
Hispanic16.7%4.1%79.2%305
Black20.5%2.9%76.7%256
Other19.1%0.0%80.9%68
Age
≤259.9%4.2%85.9%173
26–5422.8%4.2%73.0%1,011
55+22.5%5.0%72.5%381
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Georgia

14% of workers licensed

Lowest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed14.40%
Workers Certified4.15%
Workers Unionized5.10%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male12.4%3.2%84.4%470
Female16.5%5.2%78.3%565
Education Level
Less than High School4.4%0.0%95.6%66
High School6.6%1.5%91.9%236
Some College10.7%5.8%83.5%362
College19.1%4.8%76.1%227
College+37.0%4.0%59.0%144
Earnings
Average Hourly Earnings$23.47$24.33$19.411,035
Race
White15.6%4.8%79.6%613
Hispanic12.2%1.4%86.4%61
Black12.5%4.3%83.2%303
Other13.4%0.0%86.6%58
Age
≤254.7%3.4%91.9%130
26–5415.6%4.5%79.9%694
55+16.6%3.4%80.0%211
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Hawaii

21% of workers licensed

13th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed21.25%
Workers Certified9.05%
Workers Unionized25.18%
State-Level Economic Costs of Licensing
Estimated Jobs Lost40,666
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$816.1
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$5,978.7
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		63.23%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male22.1%11.0%66.9%114
Female20.3%7.1%72.6%145
Education Level
Less than High School0.0%0.0%100.0%4
High School12.2%0.0%87.8%23
Some College21.7%16.4%62.0%88
College19.2%8.4%72.3%105
College+47.7%5.8%46.5%39
Earnings
Average Hourly Earnings$49.81$28.15$22.17259
Race
White19.3%15.1%65.6%58
Hispanic45.1%3.1%51.7%18
Black74.4%0.0%25.6%6
Other19.6%7.7%72.7%177
Age
≤251.9%5.2%92.8%27
26–5427.6%10.6%61.7%156
55+19.4%7.9%72.7%76
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Idaho

24% of workers licensed

4th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed23.60%
Workers Certified5.66%
Workers Unionized6.55%
State-Level Economic Costs of Licensing
Estimated Jobs Lost10,861
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$34.5
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$967.7
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		14.80%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male21.3%5.5%73.3%165
Female26.5%5.9%67.6%179
Education Level
Less than High School5.6%0.0%94.4%16
High School14.3%2.9%82.8%68
Some College23.7%7.4%68.8%122
College20.9%7.0%72.1%93
College+54.8%3.8%41.4%45
Earnings
Average Hourly Earnings$23.71$26.75$19.06344
Race
White26.5%5.3%68.2%293
Hispanic9.6%5.5%84.9%33
Black0.0%0.0%100.0%1
Other7.5%11.7%80.8%17
Age
≤2513.7%3.4%82.9%44
26–5423.5%7.3%69.2%213
55+29.6%2.6%67.8%87
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Illinois

18% of workers licensed

43rd highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed17.73%
Workers Certified6.71%
Workers Unionized15.57%
State-Level Economic Costs of Licensing
Estimated Jobs Lost85,973
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$388.7
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$9,598.9
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		16.88%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male14.9%6.7%78.5%762
Female20.9%6.8%72.4%767
Education Level
Less than High School4.8%2.0%93.2%100
High School9.4%2.9%87.6%359
Some College17.6%7.0%75.3%519
College20.1%8.5%71.4%362
College+33.2%11.1%55.7%189
Earnings
Average Hourly Earnings$30.10$27.02$20.571,529
Race
White19.8%7.5%72.7%1,029
Hispanic9.1%5.7%85.2%246
Black16.9%3.1%80.0%144
Other16.0%7.4%76.6%110
Age
≤258.7%2.6%88.7%260
26–5418.5%7.5%74.0%968
55+21.8%7.2%71.0%301
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Indiana

18% of workers licensed

40th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed17.86%
Workers Certified6.48%
Workers Unionized10.86%
State-Level Economic Costs of Licensing
Estimated Jobs Lost31,584
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$79.9
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$2,703.3
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		12.19%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male16.5%6.6%76.9%637
Female19.4%6.4%74.2%650
Education Level
Less than High School7.1%1.5%91.4%75
High School11.2%4.1%84.7%416
Some College16.0%8.7%75.3%453
College21.4%6.7%71.9%242
College+44.2%5.4%50.4%101
Earnings
Average Hourly Earnings$22.40$18.11$17.051,287
Race
White18.6%7.0%74.4%1,088
Hispanic1.2%1.1%97.7%81
Black16.7%1.9%81.5%81
Other23.9%9.0%67.1%37
Age
≤254.5%3.2%92.2%175
26–5420.7%6.8%72.5%821
55+17.7%7.6%74.7%291
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Iowa

24% of workers licensed

2nd highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed24.33%
Workers Certified6.47%
Workers Unionized9.95%
State-Level Economic Costs of Licensing
Estimated Jobs Lost48,378
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$286.8
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$4,637.6
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		26.36%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male25.8%6.1%68.1%256
Female22.7%6.9%70.4%317
Education Level
Less than High School14.1%4.1%81.7%16
High School16.4%1.2%82.4%111
Some College25.0%8.9%66.1%179
College27.2%10.2%62.7%184
College+41.3%1.5%57.2%83
Earnings
Average Hourly Earnings$27.32$18.59$17.95573
Race
White24.8%5.9%69.3%510
Hispanic29.2%5.1%65.8%26
Black0.0%26.0%74.0%6
Other19.3%10.5%70.2%31
Age
≤257.7%2.2%90.1%81
26–5427.9%7.5%64.7%378
55+26.8%6.9%66.3%114
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Kansas

16% of workers licensed

49th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed15.97%
Workers Certified7.25%
Workers Unionized5.66%
State-Level Economic Costs of Licensing
Estimated Jobs Lost29,409
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$197.5
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$3,110.6
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		27.12%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male13.2%5.1%81.7%188
Female18.9%9.5%71.6%249
Education Level
Less than High School0.0%0.0%100.0%19
High School3.8%4.8%91.4%80
Some College16.5%10.0%73.6%142
College13.9%6.0%80.1%131
College+39.6%7.8%52.7%65
Earnings
Average Hourly Earnings$30.27$22.17$19.82437
Race
White17.5%7.2%75.2%365
Hispanic7.1%14.8%78.2%27
Black8.2%4.2%87.6%20
Other12.7%0.0%87.3%25
Age
≤257.1%9.8%83.1%44
26–5418.3%7.7%74.0%288
55+14.3%5.0%80.8%105
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Kentucky

19% of workers licensed

22nd highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed19.43%
Workers Certified5.37%
Workers Unionized10.20%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male17.4%7.1%75.5%227
Female21.6%3.6%74.9%297
Education Level
Less than High School0.0%0.0%100.0%27
High School8.0%2.7%89.3%130
Some College19.2%4.5%76.3%198
College29.0%11.2%59.7%92
College+44.7%8.0%47.3%77
Earnings
Average Hourly Earnings$26.18$32.96$17.24524
Race
White20.1%6.2%73.7%457
Hispanic0.0%0.0%100.0%10
Black13.2%0.0%86.8%41
Other29.1%0.0%70.9%16
Age
≤2512.5%4.4%83.1%60
26–5421.4%5.2%73.4%357
55+17.3%6.6%76.1%107
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Louisiana

22% of workers licensed

7th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed22.37%
Workers Certified6.15%
Workers Unionized6.88%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male19.5%6.6%73.8%281
Female25.8%5.6%68.6%335
Education Level
Less than High School9.2%1.4%89.5%38
High School14.1%2.9%83.0%156
Some College21.0%7.9%71.1%219
College28.1%7.2%64.7%136
College+50.2%9.4%40.4%67
Earnings
Average Hourly Earnings$23.40$30.27$17.97616
Race
White21.9%6.5%71.6%398
Hispanic16.8%9.1%74.1%12
Black22.8%5.1%72.1%182
Other33.4%3.8%62.8%24
Age
≤2515.0%3.9%81.1%97
26–5424.5%7.6%67.9%367
55+21.5%3.8%74.7%152
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Maine

24% of workers licensed

3rd highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed24.22%
Workers Certified5.61%
Workers Unionized11.19%
State-Level Economic Costs of Licensing
Estimated Jobs Lost12,983
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$58.2
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$1,355.8
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		17.94%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male18.4%4.2%77.4%127
Female30.0%7.0%63.0%179
Education Level
Less than High School0.0%17.0%83.0%4
High School11.8%5.7%82.5%67
Some College25.3%4.8%69.9%118
College33.9%3.7%62.4%85
College+37.4%10.6%51.9%32
Earnings
Average Hourly Earnings$28.34$18.63$17.54306
Race
White25.0%5.9%69.2%285
Hispanic25.5%17.1%57.4%5
Black0.0%0.0%100.0%4
Other13.2%0.0%86.8%12
Age
≤2512.4%0.0%87.6%29
26–5427.4%6.6%66.0%196
55+21.5%5.9%72.5%81
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Maryland

19% of workers licensed

31st highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed18.61%
Workers Certified5.15%
Workers Unionized13.80%
State-Level Economic Costs of Licensing
Estimated Jobs Lost23,874
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$79.5
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$3,268.4
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		9.97%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male17.9%5.9%76.2%408
Female19.3%4.4%76.3%451
Education Level
Less than High School2.6%0.0%97.4%32
High School11.5%2.5%86.0%170
Some College17.9%3.7%78.4%259
College18.6%8.4%73.1%231
College+31.6%7.9%60.5%167
Earnings
Average Hourly Earnings$35.31$43.87$25.58859
Race
White18.9%4.5%76.6%559
Hispanic14.3%7.6%78.1%25
Black19.0%6.7%74.3%206
Other19.2%2.3%78.6%69
Age
≤258.2%2.6%89.3%120
26–5421.5%5.7%72.8%546
55+17.3%5.3%77.4%193
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Massachusetts

18% of workers licensed

42nd highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed17.82%
Workers Certified4.89%
Workers Unionized12.70%
State-Level Economic Costs of Licensing
Estimated Jobs Lost64,222
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$411.6
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$7,889.2
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		22.02%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male14.5%4.5%81.0%569
Female21.3%5.3%73.4%654
Education Level
Less than High School7.3%3.8%88.9%42
High School8.4%3.7%87.9%274
Some College15.7%4.5%79.9%374
College18.9%3.6%77.5%326
College+29.4%8.5%62.1%207
Earnings
Average Hourly Earnings$34.15$28.75$24.791,223
Race
White18.4%5.0%76.5%1,047
Hispanic10.1%2.5%87.4%43
Black18.0%5.1%76.9%73
Other19.9%6.6%73.6%60
Age
≤256.1%2.4%91.4%191
26–5419.7%5.1%75.2%780
55+19.3%5.7%74.9%252
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Michigan

19% of workers licensed

32nd highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed18.56%
Workers Certified5.54%
Workers Unionized14.80%
State-Level Economic Costs of Licensing
Estimated Jobs Lost79,953
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$405.0
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$7,971.3
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		21.41%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male17.6%4.8%77.6%440
Female19.6%6.4%74.1%466
Education Level
Less than High School9.2%6.7%84.2%32
High School10.1%2.4%87.5%208
Some College13.6%6.4%79.9%326
College27.6%5.2%67.2%210
College+35.8%7.8%56.4%130
Earnings
Average Hourly Earnings$27.62$19.12$19.30906
Race
White18.8%5.4%75.8%746
Hispanic17.8%0.0%82.2%34
Black16.5%7.2%76.2%86
Other19.7%8.8%71.5%40
Age
≤256.1%5.0%88.9%122
26–5420.8%5.2%74.1%566
55+20.5%6.8%72.7%218
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Minnesota

22% of workers licensed

9th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed21.78%
Workers Certified5.84%
Workers Unionized14.43%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male19.7%7.5%72.8%391
Female24.0%4.0%71.9%417
Education Level
Less than High School0.0%3.0%97.0%30
High School7.0%2.1%91.0%158
Some College23.5%7.4%69.1%283
College22.4%5.5%72.1%231
College+42.1%6.7%51.2%106
Earnings
Average Hourly Earnings$27.27$23.09$22.40808
Race
White22.0%6.1%71.9%711
Hispanic2.2%0.0%97.8%39
Black26.1%7.6%66.4%20
Other28.1%4.4%67.4%38
Age
≤2510.6%3.2%86.2%93
26–5422.3%7.1%70.6%518
55+26.4%4.1%69.5%197
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Mississippi

19% of workers licensed

30th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed18.73%
Workers Certified6.70%
Workers Unionized5.07%
State-Level Economic Costs of Licensing
Estimated Jobs Lost12,942
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$37.0
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$1,219.6
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		12.52%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male20.7%8.2%71.0%217
Female16.3%4.8%78.9%266
Education Level
Less than High School6.0%10.1%83.9%39
High School11.1%2.0%86.9%106
Some College15.0%7.7%77.4%179
College31.9%6.7%61.4%102
College+37.7%11.3%51.0%57
Earnings
Average Hourly Earnings$24.72$23.66$17.56483
Race
White19.1%7.6%73.4%310
Hispanic0.0%16.1%83.9%8
Black18.5%5.0%76.5%155
Other28.6%0.0%71.4%10
Age
≤258.0%3.3%88.7%75
26–5420.2%5.9%73.9%284
55+21.0%10.5%68.6%124
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Missouri

21% of workers licensed

15th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed20.98%
Workers Certified8.12%
Workers Unionized10.48%
State-Level Economic Costs of Licensing
Estimated Jobs Lost38,556
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$118.0
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$3,545.9
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		13.77%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male19.2%8.4%72.4%527
Female22.9%7.8%69.3%563
Education Level
Less than High School13.2%9.8%77.0%45
High School11.2%4.6%84.2%292
Some College18.8%10.4%70.8%424
College21.8%6.9%71.3%213
College+45.6%8.0%46.4%116
Earnings
Average Hourly Earnings$24.31$18.44$18.341,090
Race
White20.5%8.2%71.3%946
Hispanic22.9%0.0%77.1%20
Black23.7%5.6%70.7%88
Other24.7%18.1%57.2%36
Age
≤258.6%6.5%84.9%185
26–5423.8%9.1%67.1%677
55+20.3%6.4%73.3%228
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Montana

19% of workers licensed

23rd highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed19.22%
Workers Certified7.02%
Workers Unionized11.77%
State-Level Economic Costs of Licensing
Estimated Jobs Lost8,858
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$50.1
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$1,007.4
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		20.92%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male25.0%4.8%70.3%117
Female13.8%9.1%77.0%169
Education Level
Less than High School0.0%0.0%100.0%11
High School13.1%3.4%83.5%36
Some College14.0%7.7%78.3%101
College29.2%8.3%62.4%91
College+39.1%12.5%48.5%47
Earnings
Average Hourly Earnings$31.41$23.52$18.28286
Race
White19.6%7.3%73.1%247
Hispanic27.2%0.0%72.8%11
Black0.0%0.0%100.0%1
Other13.8%6.3%79.9%27
Age
≤258.1%4.3%87.5%19
26–5422.1%6.4%71.5%186
55+17.0%9.3%73.7%81
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Nebraska

18% of workers licensed

36th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed18.17%
Workers Certified4.18%
Workers Unionized6.88%
State-Level Economic Costs of Licensing
Estimated Jobs Lost15,651
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$66.1
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$1,540.1
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		17.94%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male16.4%4.7%79.0%173
Female20.2%3.6%76.1%195
Education Level
Less than High School7.4%0.0%92.6%14
High School9.5%1.9%88.6%46
Some College18.0%4.7%77.3%148
College14.4%7.0%78.6%102
College+49.6%2.1%48.3%58
Earnings
Average Hourly Earnings$26.70$31.57$20.22368
Race
White19.1%4.3%76.6%334
Hispanic16.3%5.4%78.3%20
Black0.0%0.0%100.0%5
Other10.7%0.0%89.3%9
Age
≤2512.4%1.6%86.0%45
26–5418.2%6.2%75.7%225
55+21.3%0.7%78.0%98
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Nevada

27% of workers licensed

Highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed26.58%
Workers Certified6.08%
Workers Unionized10.55%
State-Level Economic Costs of Licensing
Estimated Jobs Lost34,740
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$195.9
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$3,621.0
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		22.88%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male28.6%6.6%64.7%155
Female24.3%5.5%70.3%183
Education Level
Less than High School20.9%0.0%79.1%16
High School20.1%4.8%75.2%63
Some College22.7%7.8%69.5%139
College30.2%7.2%62.6%80
College+61.0%3.7%35.3%40
Earnings
Average Hourly Earnings$29.12$22.54$18.57338
Race
White28.7%5.7%65.6%221
Hispanic21.6%5.3%73.2%56
Black15.9%11.5%72.5%23
Other32.3%6.8%60.9%38
Age
≤2510.8%6.8%82.4%33
26–5427.7%6.4%65.9%227
55+33.2%4.5%62.3%78
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

New Hampshire

16% of workers licensed

48th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed16.02%
Workers Certified7.24%
Workers Unionized10.14%
State-Level Economic Costs of Licensing
Estimated Jobs Lost8,032
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$31.2
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$818.6
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		15.84%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male11.7%7.3%81.0%149
Female20.7%7.1%72.1%212
Education Level
Less than High School0.0%0.0%100.0%3
High School8.3%3.2%88.5%68
Some College17.1%7.9%75.1%125
College13.2%10.1%76.7%98
College+36.2%6.6%57.2%67
Earnings
Average Hourly Earnings$27.30$20.38$24.40361
Race
White16.1%7.6%76.4%336
Hispanic26.5%7.7%65.8%12
Black0.0%0.0%100.0%2
Other14.4%0.0%85.6%11
Age
≤256.5%7.8%85.7%36
26–5418.2%8.0%73.9%213
55+15.5%5.3%79.2%112
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

New Jersey

20% of workers licensed

21st highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed19.62%
Workers Certified5.70%
Workers Unionized17.34%
State-Level Economic Costs of Licensing
Estimated Jobs Lost80,890
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$473.9
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$9,429.2
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		21.17%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male16.3%5.7%78.0%649
Female23.3%5.7%71.0%731
Education Level
Less than High School9.4%0.0%90.6%61
High School7.2%2.8%90.0%308
Some College20.1%5.5%74.4%459
College19.5%7.7%72.8%375
College+40.2%8.5%51.3%177
Earnings
Average Hourly Earnings$32.25$29.78$24.081,380
Race
White23.4%5.6%71.0%905
Hispanic11.6%5.1%83.3%141
Black18.1%6.3%75.6%159
Other15.2%6.3%78.5%175
Age
≤259.5%3.0%87.5%213
26–5420.7%5.6%73.6%865
55+23.0%7.5%69.5%302
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

New Mexico

18% of workers licensed

35th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed18.37%
Workers Certified6.42%
Workers Unionized8.98%
State-Level Economic Costs of Licensing
Estimated Jobs Lost16,442
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$87.7
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$1,662.8
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		22.26%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male18.1%6.6%75.3%179
Female18.6%6.2%75.2%184
Education Level
Less than High School0.0%0.0%100.0%21
High School6.0%5.2%88.8%61
Some College15.7%6.7%77.7%129
College31.6%6.6%61.8%80
College+37.9%11.0%51.1%72
Earnings
Average Hourly Earnings$28.15$19.61$19.13363
Race
White22.1%7.7%70.1%215
Hispanic13.4%5.7%80.8%122
Black30.6%0.0%69.4%3
Other19.6%0.0%80.4%23
Age
≤2512.8%0.0%87.2%27
26–5418.6%7.2%74.2%230
55+20.1%7.1%72.9%106
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

New York

21% of workers licensed

17th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed20.72%
Workers Certified5.32%
Workers Unionized23.98%
State-Level Economic Costs of Licensing
Estimated Jobs Lost108,045
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$376.6
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$13,087.3
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		11.85%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male20.6%5.5%73.9%819
Female20.9%5.1%74.1%882
Education Level
Less than High School3.9%0.0%96.1%80
High School12.7%3.6%83.7%391
Some College16.1%6.7%77.3%547
College19.7%5.4%74.9%411
College+47.4%6.9%45.7%272
Earnings
Average Hourly Earnings$31.63$26.10$21.351,701
Race
White21.2%5.8%73.0%1,167
Hispanic14.8%4.8%80.4%147
Black23.8%5.0%71.2%240
Other23.9%3.2%72.9%147
Age
≤255.2%3.8%91.0%264
26–5421.7%6.1%72.2%1,070
55+27.7%3.9%68.4%367
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

North Carolina

19% of workers licensed

27th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed18.90%
Workers Certified4.17%
Workers Unionized2.80%
State-Level Economic Costs of Licensing
Estimated Jobs Lost42,562
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$112.0
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$4,078.2
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		11.29%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male15.7%4.2%80.1%452
Female22.4%4.1%73.5%541
Education Level
Less than High School5.7%1.9%92.4%69
High School8.5%2.8%88.7%252
Some College18.6%4.8%76.6%323
College22.7%4.4%72.9%217
College+43.1%6.0%50.9%132
Earnings
Average Hourly Earnings$24.93$24.31$18.22993
Race
White21.8%4.4%73.8%689
Hispanic2.7%0.0%97.3%78
Black14.0%5.5%80.5%177
Other20.4%1.9%77.7%49
Age
≤254.8%2.8%92.4%138
26–5421.2%3.5%75.3%605
55+21.9%6.9%71.3%250
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

North Dakota

23% of workers licensed

6th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed22.60%
Workers Certified4.18%
Workers Unionized3.27%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male20.0%7.8%72.2%53
Female25.6%0.0%74.4%50
Education Level
Less than High School0.0%0.0%100.0%3
High School0.0%0.0%100.0%21
Some College27.5%1.5%71.0%48
College30.2%13.8%56.0%25
College+33.0%0.0%67.0%6
Earnings
Average Hourly Earnings$22.12$20.58$15.99103
Race
White25.2%4.6%70.2%95
Hispanic0.0%0.0%0.0%-
Black0.0%0.0%0.0%-
Other0.0%0.0%100.0%8
Age
≤250.0%0.0%100.0%12
26–5425.9%3.6%70.5%60
55+26.8%7.4%65.8%31
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Ohio

18% of workers licensed

37th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed18.13%
Workers Certified6.42%
Workers Unionized11.24%
State-Level Economic Costs of Licensing
Estimated Jobs Lost67,752
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$209.7
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$6,014.3
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		14.45%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male15.7%6.8%77.5%608
Female20.8%6.0%73.1%656
Education Level
Less than High School2.9%0.0%97.1%75
High School8.6%4.2%87.1%351
Some College17.2%7.7%75.1%438
College27.4%7.2%65.4%263
College+41.3%9.7%49.0%137
Earnings
Average Hourly Earnings$23.57$18.36$17.781,264
Race
White19.3%6.0%74.7%1,079
Hispanic5.0%12.7%82.3%17
Black13.0%8.7%78.4%115
Other14.6%6.3%79.1%53
Age
≤259.3%4.2%86.5%182
26–5418.0%7.0%75.0%818
55+24.3%6.3%69.4%264
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Oklahoma

19% of workers licensed

26th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed19.00%
Workers Certified7.30%
Workers Unionized5.94%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male18.5%8.8%72.6%240
Female19.5%5.5%74.9%282
Education Level
Less than High School6.1%2.6%91.3%25
High School9.2%5.2%85.5%99
Some College19.4%7.4%73.2%201
College21.3%9.1%69.6%127
College+39.6%9.8%50.6%70
Earnings
Average Hourly Earnings$22.05$19.31$18.13522
Race
White22.0%5.7%72.3%375
Hispanic9.0%5.3%85.7%34
Black5.3%18.2%76.5%22
Other12.1%11.7%76.2%91
Age
≤2513.2%5.2%81.6%72
26–5419.1%8.3%72.6%314
55+22.0%6.0%72.0%136
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Oregon

20% of workers licensed

20th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed19.83%
Workers Certified5.83%
Workers Unionized14.49%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male20.1%5.8%74.1%255
Female19.5%5.9%74.6%287
Education Level
Less than High School13.3%0.0%86.7%18
High School21.1%3.0%75.9%105
Some College18.0%5.1%76.9%187
College15.8%6.7%77.5%154
College+31.1%11.8%57.1%78
Earnings
Average Hourly Earnings$26.96$33.02$20.64542
Race
White19.4%6.4%74.2%478
Hispanic25.8%2.5%71.7%29
Black22.0%39.2%38.7%4
Other14.9%0.0%85.1%31
Age
≤259.2%2.2%88.6%53
26–5420.2%6.5%73.3%365
55+24.8%6.0%69.2%124
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Pennsylvania

19% of workers licensed

25th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed19.13%
Workers Certified5.58%
Workers Unionized15.70%
State-Level Economic Costs of Licensing
Estimated Jobs Lost89,330
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$368.3
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$9,407.4
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		16.30%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male18.0%5.3%76.6%646
Female20.4%5.8%73.7%694
Education Level
Less than High School7.8%4.5%87.7%65
High School10.3%3.9%85.7%368
Some College19.1%5.7%75.1%467
College21.4%5.2%73.4%282
College+38.3%9.8%51.9%158
Earnings
Average Hourly Earnings$28.29$21.60$19.211,340
Race
White21.0%5.9%73.1%1,140
Hispanic9.1%0.0%90.9%40
Black12.1%7.3%80.7%112
Other5.6%0.0%94.4%48
Age
≤258.4%2.5%89.1%209
26–5422.3%5.6%72.1%810
55+18.9%7.9%73.2%321
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Rhode Island

17% of workers licensed

45th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed17.35%
Workers Certified11.17%
Workers Unionized17.18%
State-Level Economic Costs of Licensing
Estimated Jobs Lost6,952
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$27.9
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$675.0
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		17.23%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male16.8%11.7%71.5%136
Female17.9%10.6%71.5%150
Education Level
Less than High School0.0%25.0%75.0%9
High School9.2%15.0%75.7%52
Some College18.9%12.3%68.8%96
College16.2%4.1%79.6%76
College+38.6%8.5%52.9%53
Earnings
Average Hourly Earnings$26.23$30.16$23.16286
Race
White17.8%9.1%73.1%254
Hispanic3.9%19.2%76.9%13
Black27.7%19.4%52.9%7
Other19.5%23.5%57.0%12
Age
≤2519.3%9.4%71.3%35
26–5415.5%13.8%70.6%164
55+20.7%5.6%73.6%87
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

South Carolina

18% of workers licensed

41st highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed17.83%
Workers Certified4.93%
Workers Unionized1.53%
State-Level Economic Costs of Licensing
Estimated Jobs Lost17,057
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$39.3
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$1,565.2
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		10.30%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male17.7%4.2%78.1%232
Female18.0%5.6%76.4%320
Education Level
Less than High School8.2%0.0%91.8%25
High School13.3%1.2%85.5%109
Some College15.8%7.4%76.8%211
College14.8%1.3%83.9%126
College+43.8%11.6%44.7%81
Earnings
Average Hourly Earnings$23.72$21.44$18.14552
Race
White19.3%5.5%75.2%392
Hispanic2.2%2.9%94.9%24
Black14.5%4.5%81.1%117
Other34.4%0.0%65.6%19
Age
≤2510.3%1.1%88.6%69
26–5419.3%4.8%75.9%357
55+18.2%7.7%74.0%126
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

South Dakota

21% of workers licensed

16th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed20.94%
Workers Certified5.07%
Workers Unionized6.83%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male23.3%5.1%71.6%105
Female18.3%5.0%76.7%157
Education Level
Less than High School0.0%0.0%100.0%3
High School12.2%6.6%81.2%37
Some College22.2%4.7%73.1%89
College23.8%4.1%72.2%91
College+34.3%7.6%58.1%42
Earnings
Average Hourly Earnings$25.74$17.52$19.84262
Race
White21.9%4.4%73.7%237
Hispanic8.4%46.8%44.8%6
Black0.0%0.0%100.0%1
Other17.5%0.0%82.5%18
Age
≤2516.4%5.2%78.4%32
26–5422.8%4.5%72.7%142
55+19.8%6.2%74.0%88
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Tennessee

21% of workers licensed

12th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed21.28%
Workers Certified5.34%
Workers Unionized9.83%
State-Level Economic Costs of Licensing
Estimated Jobs Lost46,068
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$173.0
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$4,510.5
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		15.95%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male18.7%5.2%76.1%413
Female24.3%5.5%70.2%421
Education Level
Less than High School12.7%0.0%87.3%36
High School11.8%3.7%84.5%251
Some College21.1%7.4%71.5%314
College19.5%2.9%77.6%150
College+51.3%9.2%39.5%83
Earnings
Average Hourly Earnings$26.24$20.64$18.33834
Race
White22.3%6.0%71.7%653
Hispanic20.3%0.0%79.7%25
Black15.1%3.9%81.0%128
Other24.0%3.0%73.1%28
Age
≤2511.0%2.9%86.1%121
26–5422.9%4.8%72.4%504
55+23.7%8.3%67.9%209
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Texas

19% of workers licensed

29th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed18.88%
Workers Certified4.99%
Workers Unionized4.83%
State-Level Economic Costs of Licensing
Estimated Jobs Lost143,754
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$431.5
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$12,762.6
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		14.00%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male17.0%4.8%78.1%1,304
Female21.2%5.2%73.6%1,270
Education Level
Less than High School4.4%1.5%94.2%293
High School10.9%3.5%85.6%687
Some College18.3%5.9%75.8%875
College27.5%6.3%66.2%487
College+39.4%6.1%54.4%232
Earnings
Average Hourly Earnings$23.51$21.54$17.862,574
Race
White23.2%6.2%70.6%1,266
Hispanic14.0%2.9%83.1%849
Black16.3%5.8%77.8%339
Other17.0%6.2%76.8%120
Age
≤259.9%3.7%86.4%427
26–5420.4%5.2%74.4%1,653
55+20.5%5.3%74.1%494
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Utah

16% of workers licensed

47th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed16.26%
Workers Certified6.74%
Workers Unionized6.60%
State-Level Economic Costs of Licensing
Estimated Jobs Lost19,665
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$87.9
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$1,902.9
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		19.36%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male16.6%4.9%78.5%224
Female15.8%9.0%75.2%230
Education Level
Less than High School0.0%0.0%100.0%7
High School11.6%6.1%82.3%62
Some College14.8%8.9%76.4%190
College16.0%3.8%80.2%127
College+36.4%5.2%58.4%68
Earnings
Average Hourly Earnings$26.48$17.19$21.32454
Race
White17.0%6.8%76.2%395
Hispanic6.1%8.2%85.7%26
Black66.7%0.0%33.3%2
Other20.4%4.2%75.4%31
Age
≤2510.2%8.8%80.9%85
26–5417.9%7.0%75.1%290
55+16.9%3.4%79.6%79
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Vermont

19% of workers licensed

33rd highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed18.52%
Workers Certified7.78%
Workers Unionized9.29%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male14.1%9.2%76.7%98
Female23.1%6.3%70.6%159
Education Level
Less than High School0.0%22.4%77.6%4
High School7.1%0.0%92.9%50
Some College22.0%13.4%64.6%63
College15.5%9.9%74.6%86
College+43.0%4.4%52.5%54
Earnings
Average Hourly Earnings$26.33$21.52$20.89257
Race
White18.9%8.1%73.0%242
Hispanic0.0%0.0%100.0%2
Black18.0%0.0%82.0%4
Other11.7%0.0%88.3%9
Age
≤2511.5%2.9%85.6%28
26–5417.6%11.1%71.3%137
55+22.8%3.5%73.7%92
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Virginia

20% of workers licensed

19th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed20.06%
Workers Certified5.99%
Workers Unionized5.37%
State-Level Economic Costs of Licensing
Estimated Jobs Lost48,927
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$173.1
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$5,462.1
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		13.09%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male18.8%5.3%75.9%667
Female21.5%6.7%71.8%763
Education Level
Less than High School9.6%0.0%90.4%49
High School11.8%2.2%86.0%325
Some College21.7%6.6%71.7%476
College21.0%6.0%72.9%345
College+28.5%10.9%60.6%235
Earnings
Average Hourly Earnings$29.39$30.93$25.081,430
Race
White22.3%6.4%71.3%912
Hispanic14.8%2.6%82.6%49
Black14.3%5.8%79.8%352
Other17.0%5.8%77.2%117
Age
≤2510.6%5.9%83.5%188
26–5421.7%5.4%73.0%919
55+21.1%7.6%71.3%323
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Washington

21% of workers licensed

11th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed21.46%
Workers Certified7.55%
Workers Unionized19.92%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male21.5%7.4%71.1%593
Female21.4%7.7%70.9%584
Education Level
Less than High School12.0%1.5%86.5%62
High School17.1%2.6%80.2%235
Some College19.5%8.6%71.9%445
College21.7%9.0%69.3%297
College+36.1%10.9%53.0%138
Earnings
Average Hourly Earnings$25.67$27.70$22.871,177
Race
White23.0%8.6%68.4%916
Hispanic14.5%4.4%81.1%93
Black32.0%10.2%57.9%25
Other14.9%2.6%82.5%143
Age
≤2512.6%4.2%83.2%168
26–5421.9%8.1%70.0%729
55+25.9%8.1%66.0%280
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

West Virginia

22% of workers licensed

8th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed21.95%
Workers Certified8.42%
Workers Unionized12.67%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male23.4%8.3%68.3%163
Female20.3%8.6%71.1%225
Education Level
Less than High School31.4%0.0%68.6%8
High School18.0%7.1%74.9%97
Some College16.1%7.7%76.2%147
College27.1%11.3%61.6%90
College+46.5%12.6%40.8%46
Earnings
Average Hourly Earnings$24.33$21.86$19.66388
Race
White23.4%8.2%68.5%358
Hispanic100.0%0.0%0.0%1
Black0.0%0.0%100.0%10
Other4.2%18.1%77.7%19
Age
≤2511.1%5.2%83.7%48
26–5423.1%10.1%66.9%252
55+23.5%5.2%71.4%88
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Wisconsin

18% of workers licensed

39th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed17.96%
Workers Certified6.26%
Workers Unionized11.55%
State-Level Economic Costs of Licensing
Estimated Jobs Lost37,002
Estimated Deadweight Losses (in $M)
Conservative measure of economic value lost		$133.2
Estimated Misallocated Resources (in $M)
Broader measure of economic value lost		$3,732.5
Estimated Economic Returns from Licensing
Increase over what licensees would make if not for licensing—a cost
borne by consumers and the wider economy		14.80%
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male14.8%6.6%78.6%584
Female21.4%5.9%72.7%665
Education Level
Less than High School0.0%3.5%96.5%58
High School6.6%2.4%90.9%337
Some College15.9%6.8%77.3%477
College23.1%7.6%69.4%251
College+44.8%10.1%45.2%126
Earnings
Average Hourly Earnings$26.84$18.68$18.201,249
Race
White19.5%6.6%73.9%1,095
Hispanic5.8%4.5%89.7%56
Black1.8%3.9%94.3%50
Other13.3%3.8%82.9%48
Age
≤255.5%2.7%91.8%187
26–5419.6%6.4%73.9%754
55+20.6%7.7%71.7%308
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Wyoming

23% of workers licensed

5th highest percentage

Percentage of Workers Who Are Licensed, Certified or Unionized
Workers Licensed22.82%
Workers Certified9.31%
Workers Unionized5.64%
Note: Economic costs were not calculated for this state as the estimated economic returns from licensing were not statistically significant.
Characteristics of Workers Who Are Licensed, Certified or Neither
Licensed Certified Neither Obs.
Gender
Male27.0%10.8%62.2%118
Female18.0%7.6%74.5%144
Education Level
Less than High School0.0%0.0%100.0%3
High School23.2%5.7%71.1%41
Some College21.9%12.5%65.6%104
College21.3%7.3%71.4%70
College+34.9%6.6%58.4%44
Earnings
Average Hourly Earnings$21.94$26.13$20.48262
Race
White22.8%8.5%70.4%231
Hispanic14.8%28.6%56.6%12
Black15.7%0.0%84.3%4
Other33.4%0.0%66.6%15
Age
≤2519.4%10.2%70.4%20
26–5424.6%7.4%68.0%162
55+19.9%13.6%66.5%80
Note: The Obs. column shows the actual number of observations in the dataset. Percentages were calculated using those observations with weights applied.

Sign up to receive IJ's biweekly digital magazine, Liberty & Law along with breaking updates about our fight to protect the rights of all Americans.

JOIN THE FIGHT!