This study from a team led by Edward Timmons at the Archbridge Institute is designed to undertake a comprehensive global examination of the scope and impact of occupational licensing on economic activity. The existing landscape is highly disparate and lacks a consolidated global perspective. In the US, 1 in 5 workers are now required to hold occupational licenses, up from just 1 in 20 workers in the 1970s. Comparable international data remains largely undefined and fragmented, hindering a full understanding of global implications.

Previous studies in Canada, Russia, China, Mexico, and various European countries suggest that occupational licensing can pose significant impediments to economic activity. Findings point to increased prices for consumers due to reduced competition, rising unemployment as entry barriers are created, heightened risks of corruption stemming from regulatory discretion, and an overall deceleration of economic activity. Within the US, further research has shown no demonstrable correlation between occupational licensing and improved products or production quality. At the same time, researchers caution against sweeping generalizations without a more comprehensive understanding of diverse global regulatory frameworks.

This project addresses that critical lacuna by adapting and expanding a methodology previously used in the US and EU, building on the work of Morris Kleiner and Alan Krueger, and Maria Koumenta and Mario Pagliero. The working hypothesis is that the effects of occupational licensing are similar to what has already been documented in other parts of the world. To test this, the study will include three main subcomponents: local surveys and research studies, training international researchers to uncover occupational licensing barriers, and developing licensing indices across the world. The project will also help establish a vibrant global community of academics and researchers focused on the effects of excessive occupational licensing, while supporting events and dissemination efforts to maximize the impact of the findings.