Testing the Utility of Licensing: Evidence from a Field Experiment on Occupational Regulation
This study examines hypothesized benefits associated with occupational licensing in one long-regulated industry in Louisiana—floristry—in order to determine to what extent licensing results in theorized benefits that might justify the costs associated with licensure systems. Results indicate the regulation appears not to result in a statistically significant difference in quality of product. Moreover, floristjudges, whether licensed or not, appeared consistent in how they rated 50 floral arrangements from randomly chosen floral retailers.
Suggested citation: Carpenter, D. M. (2012). Testing the utility of a licensing policy: Evidence from a field experiment. Journal of Applied Business and Economics, 13(2), 28-41.
Click here to read the full report.
Related Cases

Economic Liberty | Fresh Start
Maryland small business owner files federal lawsuit against USDA over policy of permanent punishment for crime for which he already served his time
When the government judges someone’s integrity, it should do so based on who they are today—not who they were 20 years ago. The United States Department of Agriculture (USDA), however, imposes a permanent ban from…

Economic Liberty | First Amendment | Private Property | Vending
Small business owners sue to strike down Jacksonville regulations effectively banning food trucks from city
Jacksonville, North Carolina effectively bans food trucks from operating in 96 percent of the city. That's why a group of small business owners has teamed up with the Institute for Justice to file a lawsuit…

Woman challenges Arizona city's ban on feeding people for "charitable purposes"
Norma Thornton was arrested for feeding the hungry in Bullhead City Community Park. Now, Norma has teamed up with IJ to fight back against Bullhead's law criminalizing charitable sharing in federal court.