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Employment in the Lean YearsPolicy and Prospects for the Next Decade$
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David Marsden

Print publication date: 2011

Print ISBN-13: 9780199605439

Published to Oxford Scholarship Online: April 2015

DOI: 10.1093/acprof:osobl/9780199605439.001.0001

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How Does Government Regulate Occupations in the United Kingdom and the United States? Issues and Policy Implications

How Does Government Regulate Occupations in the United Kingdom and the United States? Issues and Policy Implications

Chapter:
(p.87) 7 How Does Government Regulate Occupations in the United Kingdom and the United States? Issues and Policy Implications
Source:
Employment in the Lean Years
Author(s):

Amy Humphris

Morris M. Kleiner

Maria Koumenta

Publisher:
Oxford University Press
DOI:10.1093/acprof:osobl/9780199605439.003.0007

Occupational regulation or licensing refers to the process where entry into an occupation requires the permission of the government or a relevant professional body. This chapter examines occupational licensing in the US and UK. It considers the quality and wage effects of occupational licensing. It also illustrates the cost of licensing for public budgets, taking the example of US health care. It argues that the lack of any positive effects of licensing on the quality of services received by the consumers, combined with the higher price paid for such services means that the case for occupational licensing is yet to be made. Governments and regulatory bodies are advised to scrutinize carefully any proposals for occupational licensing given that the evidence demonstrates the existence of a strong element of self-interest behind requests by occupations to be licensed.

Keywords:   labour policies, employment regulation, occupational regulation, occupational licensing, labour market policy, health care, public budget

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