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Hub AI
Occupational licensing AI simulator
(@Occupational licensing_simulator)
Hub AI
Occupational licensing AI simulator
(@Occupational licensing_simulator)
Occupational licensing
Occupational licensing, also called licensure, is a form of government regulation requiring a license to pursue a particular profession or vocation for compensation. It is related to occupational closure.
Some claim higher public support[citation needed] for the licensing of professions whose activities could be a health or safety threat to the public, such as practicing medicine, and doctors require occupational licenses in most developed countries. However, some jurisdictions also require licenses for a much wider range of professions, such as florists and hairdressers. Some studies find consumers are more responsive to reviews than to occupational licensing status.
Licensing creates a regulatory barrier to entry into licensed occupations. Licensing advocates argue that it protects the public interest by keeping incompetent and unscrupulous individuals from working with the public. However, there is little evidence that it affects the overall quality of services provided to customers by members of the regulated occupation. It can also harm consumers by raising prices and reducing innovation by new market entrants, and may slow overall economic growth. Some occupational licensing can violate competition law due to anti-competitive practices.
Alternatives to individual licensing include only requiring that at least one person on a premises be licensed to oversee unlicensed practitioners, permitting of the business overall, random health and safety inspections, general consumer protection laws, and deregulation in favor of voluntary professional certification schemes or free market mechanisms such as customer review sites.
Traditionally, occupations in the crafts professions and in the liberal professions organize their respective industries in guilds and chambers in European countries like Germany and Austria. One of the most important changes in licensing has been the 2004 reform in Germany, where workers in 53 of 94 crafts professions were not required to be licensed anymore in order to start a business. In 2020, 12 of these deregulated professions reinstated the licensing requirement.
In the United States and Canada, licensing (the term registration is sometimes used) is usually required by law to work in a particular profession or to obtain a privilege such as to drive a car or truck. Many other privileges and professions require a license, generally from the state or provincial government, in order to ensure that the public will not be harmed by the incompetence of the practitioners, and to limit supply to incumbent practitioners and thus increase wages.
Examples of professions that require licensure in some jurisdictions include: actuary, architect, certified public accountant, electrician, engineering, general contractors, financial analyst, geologists, hedge fund manager, insurance agent, interior design, investment banker, licensed professional counselor, nurse, physical therapist, plumber, private investigator, psychologist, landscape architect, lawyer, nutritionist, physician, real estate broker, speech-language pathologist, school counselor, social worker, stockbroker, surveyor, and teacher.
Licensure is similar to professional certification, and sometimes synonymous (such as in the case with teacher licensure/certification); however, certification is an employment qualification and not a legal requirement for practicing a profession. In many cases, an individual must complete certain steps, such as training, acquiring an academic degree in a particular area of study, and/or passing an exam, before becoming eligible to receive their license. There are various resources available to assist professionals with the completion of these steps. Professional associations are often a tremendous resource to individuals looking to obtain a special level of certification or licensure. Upon the successful attainment of a license, individuals append an acronym to their name, such as CPA (Certified Public Accountant) or LPD and PI (Private Detective and Investigator) PE (Professional Engineer).
Occupational licensing
Occupational licensing, also called licensure, is a form of government regulation requiring a license to pursue a particular profession or vocation for compensation. It is related to occupational closure.
Some claim higher public support[citation needed] for the licensing of professions whose activities could be a health or safety threat to the public, such as practicing medicine, and doctors require occupational licenses in most developed countries. However, some jurisdictions also require licenses for a much wider range of professions, such as florists and hairdressers. Some studies find consumers are more responsive to reviews than to occupational licensing status.
Licensing creates a regulatory barrier to entry into licensed occupations. Licensing advocates argue that it protects the public interest by keeping incompetent and unscrupulous individuals from working with the public. However, there is little evidence that it affects the overall quality of services provided to customers by members of the regulated occupation. It can also harm consumers by raising prices and reducing innovation by new market entrants, and may slow overall economic growth. Some occupational licensing can violate competition law due to anti-competitive practices.
Alternatives to individual licensing include only requiring that at least one person on a premises be licensed to oversee unlicensed practitioners, permitting of the business overall, random health and safety inspections, general consumer protection laws, and deregulation in favor of voluntary professional certification schemes or free market mechanisms such as customer review sites.
Traditionally, occupations in the crafts professions and in the liberal professions organize their respective industries in guilds and chambers in European countries like Germany and Austria. One of the most important changes in licensing has been the 2004 reform in Germany, where workers in 53 of 94 crafts professions were not required to be licensed anymore in order to start a business. In 2020, 12 of these deregulated professions reinstated the licensing requirement.
In the United States and Canada, licensing (the term registration is sometimes used) is usually required by law to work in a particular profession or to obtain a privilege such as to drive a car or truck. Many other privileges and professions require a license, generally from the state or provincial government, in order to ensure that the public will not be harmed by the incompetence of the practitioners, and to limit supply to incumbent practitioners and thus increase wages.
Examples of professions that require licensure in some jurisdictions include: actuary, architect, certified public accountant, electrician, engineering, general contractors, financial analyst, geologists, hedge fund manager, insurance agent, interior design, investment banker, licensed professional counselor, nurse, physical therapist, plumber, private investigator, psychologist, landscape architect, lawyer, nutritionist, physician, real estate broker, speech-language pathologist, school counselor, social worker, stockbroker, surveyor, and teacher.
Licensure is similar to professional certification, and sometimes synonymous (such as in the case with teacher licensure/certification); however, certification is an employment qualification and not a legal requirement for practicing a profession. In many cases, an individual must complete certain steps, such as training, acquiring an academic degree in a particular area of study, and/or passing an exam, before becoming eligible to receive their license. There are various resources available to assist professionals with the completion of these steps. Professional associations are often a tremendous resource to individuals looking to obtain a special level of certification or licensure. Upon the successful attainment of a license, individuals append an acronym to their name, such as CPA (Certified Public Accountant) or LPD and PI (Private Detective and Investigator) PE (Professional Engineer).