Indiana licenses 37 of the 102 lower-income occupations studied here. Its licensing laws rank as the 26th most burdensome because Indiana’s barriers to entry average $163 in fees, 323 days lost to education and experience, and approximately one exam. Indiana ranks as the 44th most broadly and onerously licensed state for lower-income workers, making it better than most but still leaving ample room for improvement.
Indiana licenses several occupations that are not licensed by other states, such as veterinary technicians (licensed by 36 states), auctioneers (30 states), sign language interpreters (22 states), taxi drivers and chauffeurs (16 states), and bartenders (13 states). Among those, sign language interpreters in Indiana face particularly steep burdens of more than four years of education, two exams and $725 in fees.
Indiana also imposes burdens on some occupations that seem excessive compared to those for other occupations that may present greater risks to the public. For example, in Indiana, it is harder to become a manicurist than it is to become an EMT. EMTs need only about 37 days (160 hours) of education, while manicurists need around 105 days (450 hours) of education. Indiana should consider whether this and other heavy licensing burdens can be reduced, repealed or—if government regulation is necessary—replaced with less restrictive regulatory alternatives.
Arizona remains one of the worst states in the nation when it comes to licensing burdens for lower-income occupations. It licenses 68 of the 102 occupations studied here, and its licensing laws rank as the fourth most burdensome, due to high licensing fees and arduous education and experience requirements. Occupational licenses in Arizona require an average of $612 in fees, 765 days—more than two years—of education and experience, and approximately two exams. Because it licenses so many occupations so onerously, Arizona ranks as the fourth most broadly and onerously licensed state.
Arizona imposes particularly burdensome fees and experience requirements on would-be licensees in several occupations. Its highest fees are roughly three times the national average. Bill collection agencies face Arizona’s heftiest fees, paying $1,500 (compared to the $551 average across licensed states). Water well earth drillers must pay $1,031 (compared to the $356 national average). And Arizona’s experience burdens for aspiring opticians are some of the heaviest of their type in the nation, requiring 1,095 days (three years) of experience. This is considerably higher than the average 714 days required in the 22 states that license opticians.
Arizona’s licensing laws are also rife with irrationalities, often imposing burdens on some occupations that seem excessive compared with those for others that may pose greater risks. For example, 15 of the 33 Arizona contractor licenses studied are more burdensome than the state’s direct entry midwife license, and all of the contractor licenses studied are considerably more onerous than its EMT license, which merely requires a 110-hour course (an estimated 26 days lost), an $80 fee and two exams. To improve its rankings, Arizona should reduce or repeal its onerous licenses for contractors and other occupations, or—if government regulation is necessary—replace them with less restrictive regulatory alternatives.
Idaho licenses 67 of the 102 lower-income occupations studied here. Its laws are the 30th most burdensome, requiring an average of $164 in fees, 332 days of education and experience, and around one exam. Despite ranking in the less burdensome half of states, Idaho is in the top half of broadly and onerously licensed states—ranking 16th—because it licenses a higher number of occupations than most states.
Idaho frequently licenses occupations that are unlicensed by other states. Bill collection agencies are licensed by just 30 other states but must demonstrate three years (roughly 1,095 days) of experience before they can operate in Idaho. (The average across licensed states is just 159 days.) And log scalers and nursery workers are each licensed by only one other state.
Idaho also imposes higher-than-average burdens on fire and security alarm installers. The state requires 1,460 days (four years) of experience before alarm installers can open for business. The average across licensed states is about 40 percent lower: approximately 915 days of education and experience for fire alarm installers and 836 days for security alarm installers.
Idaho also imposes particularly heavy burdens on some occupations with little connection to public safety. EMTs, for example, must demonstrate only 150 hours (an estimated 35 days) of education to become licensed. But would-be cosmetologists must complete 2,000 hours (about 467 days) of education to become licensed—some of the highest cosmetology license requirements in the nation. Idaho could open up more employment opportunities in the state by reducing or repealing burdensome licensing requirements for cosmetologists and other occupations, or—if government regulation is necessary—by replacing them with less restrictive regulatory alternatives such as inspections or voluntary certification.
Minnesota is one of the better states in the nation for occupational licensing, ranking as only the 46th most broadly and onerously licensed state for lower-income occupations. It licenses 34 of the 102 occupations studied here, which is fewer than most states. Its laws rank as the 29th most burdensome and require, on average, $238 in fees, 300 days of education and experience, and around two exams.
Despite its better-than-average rankings, Minnesota licenses some occupations that are rarely licensed elsewhere. For example, few other states license electrical helpers (just one), packers (five), title examiners (six) or dental assistants (eight). Workers in these occupations are allowed to operate in most states without state licensure, calling into question why Minnesota deems licensure necessary. Minnesota also licenses dental assistants more stringently than the few other states that license the occupation, requiring $681 in fees, an estimated 425 days of education and three exams. By comparison, the average requirements across licensed states are just $138 in fees, 92 days of education and experience, and one exam.
Minnesota licenses dental assistants so onerously that it is easier to become an EMT than it is to become a dental assistant. EMTs must complete just 150 hours (roughly 35 days) of education, meaning that dental assistants need 12 times as much schooling. Cosmetologists and barbers also face more stringent licensing requirements than EMTs. Cosmetologists must demonstrate 10 times as much education (1,550 hours or roughly 362 days) and barbers almost 18 times as much (1,500 hours each of education and experience, equivalent to 613 days). Minnesota could reduce barriers to employment in lower-income occupations by reducing or repealing such high education and experience requirements, or—if government regulation is necessary—by replacing occupational licenses with less restrictive regulatory alternatives.
Michigan licenses 49 of the 102 lower-income occupations studied here, which is fewer than the national average. Its laws are the 33rd most burdensome. On average, Michigan’s barriers to entry into lower-income occupations are $242 in fees, 255 days lost to education and experience, and approximately two exams. It ranks as the 30th most broadly and onerously licensed state.
Michigan licenses some occupations that are not licensed by other states. For example, 15 states do not license veterinary technicians at all, but to work in Michigan they must pay $350 in fees, complete two years (730 days) of education and pass an exam. Similarly, many states do not license animal control officers (44), taxi drivers and chauffeurs (35), or residential painting contractors (23), among other occupations. Michigan also imposes more onerous requirements than many other states for some occupations. Fire alarm installers, for example, must pay $1,045 in fees before becoming licensed. That is nearly twice the $557 average across states that license the occupation.
Michigan also imposes burdens on some occupations that seem excessive compared to those for other occupations that may present greater risks to the public. For example, people wishing to start a bill collection agency must demonstrate six months (roughly 182 days) of experience to receive a license. Meanwhile, EMTs must complete only 194 hours (about 45 days) of education. Not only is it illogical to require four times as much training for bill collection agencies as for emergency first responders, but 20 states do not license bill collection agencies at all. Michigan can expand employment opportunities in the state by reducing or repealing irrationally burdensome licensing requirements, or—if government regulation is necessary—by replacing licensing with less restrictive regulatory alternatives such as insurance, inspections or voluntary certification.
Massachusetts’ licensing laws for lower-income occupations are the 10th most burdensome, requiring, on average, $309 in fees, 513 days lost to education and experience, and roughly one exam. Massachusetts licenses fewer lower-income occupations than most states—50 of 102—making it the 29th most broadly and onerously licensed state.
Massachusetts licenses some occupations much more onerously than other states, including some that are already among the nation’s most burdened occupations. For example, both of the state’s commercial sheet metal contractor licenses—HVAC and other—require five years (1,825 days) of experience. But the average education and experience requirement across licensed states is 1,215 days for HVAC sheet metal contractors and just 567 days for other sheet metal contractors. These disparities are particularly jarring given that several states do not license these occupations at all.
Massachusetts also imposes burdens on some occupations that seem excessive compared to those for other occupations that may present greater risks to the public. Cosmetologists, for example, must complete 1,000 hours of education and then demonstrate two years of experience (the equivalent of 963 days)—the heaviest education and experience requirements of their type. But Massachusetts deems EMTs able to administer life-saving aid after having demonstrated only 150 hours (about 35 days) of education. To expand opportunity for lower-income workers, Massachusetts should repeal or reduce irrationally heavy licensing burdens, or—if government regulation is necessary—replace them with less restrictive regulatory alternatives.
Maryland’s licensing laws for lower-income occupations are the 11th most burdensome. On average, Maryland’s barriers to entry into these occupations are $288 in fees, 529 days lost to education and experience, and about one exam. Because it licenses slightly fewer occupations than similarly burdensome states—59 of the 102 studied here—Maryland ranks as the nation’s 20th most broadly and onerously licensed state.
Maryland licenses several occupations that are rarely licensed elsewhere. For example, few other states license packers (five), tree trimmers (six), animal trainers (eight), upholsterers (nine) or farm labor contractors (nine). Among those, tree trimmers face particularly steep burdens. To obtain a license, they must demonstrate two years of education and one year of experience (1,095 days total), pass an exam, and pay a $30 fee. With so few states licensing tree trimmers, it is questionable for Maryland to license them at all, let alone so onerously.
Maryland also imposes high education and experience requirements on some occupations that seem excessive compared to those for other occupations that may present greater risks to the public. For example, EMTs are deemed competent to work as first responders after only 165 hours (approximately 39 days) of education. Meanwhile, barbers must complete 1,200 hours (roughly 280 days) of education and cosmetologists 1,500 hours (roughly 350 days) before becoming licensed. To expand opportunity, Maryland should reduce, if not repeal, inconsistent or irrational burdens like these, or—if government regulation is necessary—replace them with less restrictive regulatory alternatives.
Alabama licenses more lower-income occupations than average—63 of the 102 studied here—and its laws are the 47th most burdensome. On average, Alabama’s barriers to entry into lower-income occupations are $329 in fees, 142 days of education and experience, and approximately one exam. The state ranks as the 25th most broadly and onerously licensed, placing it right in the middle of the pack.
Alabama licenses some occupations that are rarely licensed elsewhere. For example, few other states license animal trainers (eight), bartenders (12) or locksmiths (13). And Alabama charges much higher fees than many other states for pipelayer contractors: $592 compared to the $377 average in the 27 states that license them.
Alabama also imposes burdens on some occupations that seem excessive compared to those for other occupations that may present greater risks to the public. For example, auctioneer is Alabama’s seventh most onerously licensed occupation, requiring $500 in fees and 385 days of education and experience (comprising an 85-hour course and a one-year apprenticeship). These barriers are higher than both the average barriers in the 30 states that license auctioneers ($278 in fees and 94 days of education and experience) and Alabama’s own fee and education and experience requirements for EMTs, an occupation that has far more to do with public health and safety. Aspiring EMTs need only pay a $90 fee and complete an estimated 42 days (180 hours) of education to become licensed. To expand opportunity for workers in the state, Alabama should reduce or repeal irrational licensing burdens, or—if government regulation is necessary—replace them with less restrictive regulatory alternatives.
Alaska licenses more occupations than average—63 of the 102 lower-income occupations studied here—and its laws are the 45th most burdensome. Alaska’s average barriers to entry are $298 in fees, 211 days of education and experience, and around one exam. As the 24th most broadly and onerously licensed state, Alaska has much room for improvement.
Alaska’s license requirements for some occupations are particularly burdensome when compared to the average burdens across licensed states. For example, at $1,000, the fee to become an athletic trainer in Alaska is twice the licensed-state average. And Alaska requires about 1,097 days of education and experience (comprising three years of experience and 10 hours of education) to become a licensed school bus driver, when the national average is just 300 days.
Alaska also imposes fee and education burdens on some occupations that seem excessive compared to those for other occupations that may present greater risks to the public. Veterinary technicians, for example, must complete two years (730 days) of education and pay $535 in fees in Alaska. These barriers are much higher than those for EMTs, who provide emergency first aid to humans but must only complete 120 hours (around 28 days) of specialized education and pay $105 in fees. Alaska could improve its rank by repealing or reducing inconsistent or irrational burdens for vet techs and other occupations, or—if government regulation is necessary—by replacing them with less restrictive regulatory alternatives.
Arkansas is one of the worst states in the nation when it comes to licensing lower-income occupations. It licenses 72 of the 102 occupations studied here, and its licensing laws rank as the sixth most burdensome, due to high average education and experience burdens. On average, Arkansas requires $246 in fees, 642 days of education and experience, and about one exam. Because it licenses so many occupations so onerously, the state ranks as the third most broadly and onerously licensed.
Arkansas licenses several occupations that are rarely licensed elsewhere. For example, nursery workers are licensed by just one other state, psychiatric technicians by four and title examiners by six. Among these, title examiners face particularly steep burdens. They need at least one year of experience to become licensed in Arkansas, which is more than three times the average required in other licensed states (about 104 days).
The most onerously licensed occupation in Arkansas is fire alarm installer. Licensees must have 1,825 days—five years—of experience, pay $1,443 in fees and pass four exams before they can open for business. By comparison, the average across licensed states is about half that: $557 in fees, 915 days lost to education and experience, and two exams. To open up more employment opportunities in the state, Arkansas should reduce, if not repeal, these and other particularly onerous licensing burdens, or—if government regulation is necessary—replace them with less restrictive regulatory alternatives.