Indiana

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 Indiana should consider whether this and other heavy licensing burdens can be reduced, repealed or—if government regulation is necessary—replaced with less restrictive regulatory alternatives.

Illinois

Illinois’ licensing laws for lower-income occupations are the 35th most burdensome. On average, Illinois’ barriers to entry are $244 in fees, 249 days lost to education and experience, and around one exam. Licensing 40 of the 102 lower-income occupations studied here, Illinois is the 39th most broadly and onerously licensed state.

Illinois imposes more onerous requirements than many other states for some occupations. For example, sign language interpreters—the state’s most onerously licensed occupation—must pay a $900 fee, complete four years and 40 hours of education (roughly 1,469 days total), and pass two exams to become licensed. But more than half of states (29) do not license the occupation at all and, among those that do, the average requirements are just $661 in fees, about 1,088 days of education and experience, and two exams.

Illinois 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, it takes more schooling to become a barber or a cosmetologist in Illinois than it does to become an EMT. EMTs can become licensed after completing about 37 days (160 hours) of education. Barbers and cosmetologists, on the other hand, must spend nearly 10 times as long in school (1,500 hours or roughly 350 days) before they can work. Illinois could expand lower-income employment opportunities by reducing or repealing these and other licensing burdens, or—if government regulation is necessary—by replacing them with less restrictive regulatory alternatives.

Idaho

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

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

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

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

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.

Wisconsin

Wisconsin licenses 42 of the 102 lower-income occupations studied here, which is fewer than most states. Ranking as the 42nd most burdensome, Wisconsin’s licensing laws require, on average, $259 in fees, 214 days of education and experience, and around one exam. The state ranks as the nation’s 36th most broadly and onerously licensed.

Wisconsin frequently licenses occupations that are unlicensed by other states. For example, few other states license animal trainers (eight), farm labor contractors (nine), bartenders (12) or sign language interpreters (21). Among those, sign language interpreters face particularly steep education and experience requirements: 1,469 days (four years and 40 clock hours) of education. The average in states that license the occupation, meanwhile, is 1,088 days. And bill collection agencies, which are unlicensed in 20 states, face unusually high fees in Wisconsin ($1,200 versus an average of $551).

Wisconsin also imposes burdens on some occupations that seem excessive compared to those for other occupations that may present a greater risk to public safety. For example, it takes over 10 times as long to become a cosmetologist in Wisconsin as it does to become an EMT. EMTs must complete roughly 35 days (150 hours) of education, while cosmetologists need an estimated 362 (1,550 hours). Wisconsin could expand lower-income employment opportunities by reducing or repealing its licensing burdens 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.

Wyoming

Wyoming’s licensing laws for lower-income occupations are the 25th most burdensome, requiring, on average, $345 in fees, 280 days of education and experience, and around two exams. But Wyoming licenses fewer of the 102 occupations studied here than any other state—just 26—making it the least broadly and onerously licensed state.

Although Wyoming licenses relatively few occupations, some of its licenses are more burdensome than average. For example, Wyoming has one of the most burdensome cosmetology licenses in the nation, requiring roughly 467 days (2,000 hours) of education, while the national average for the occupation is 386 days.

Wyoming also licenses some occupations more onerously than others that may present a greater risk to public safety. For example, EMTs can become licensed after completing roughly 42 days (180 hours) of education and paying a $39 fee. A person wishing to open a bill collection agency, however, must demonstrate a year of experience and pay $600 in fees. Wyoming could expand lower-income employment opportunities in the state by reducing or repealing its burdens for bill collection agencies and other occupations, or—if government regulation is necessary—by replacing them with less restrictive regulatory alternatives.

South Dakota

South Dakota’s licensing laws for lower-income occupations are the 19th most burdensome. On average, its barriers to entry for these occupations are $198 in fees, 355 days of education and experience, and roughly two exams. Because South Dakota licenses fewer lower-income occupations than most states—32 of the 102 studied here—it ranks as only the 48th most broadly and onerously licensed state.

South Dakota licenses several occupations that are not licensed by other states, such as title examiners (licensed by six other states), sign language interpreters (21 others) and gaming dealers (27 others). Among those, sign language interpreters face particularly steep burdens. In South Dakota, they must complete an estimated 1,469 days of education—over a year more than the licensed-state average (1,088 days). And South Dakota’s license for water well earth drillers requires 1,825 days (five years) of experience, more than double the national average (837 days lost to education and experience) for the occupation.

The state 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, not only are South Dakota’s burdens for cosmetologists and barbers some of the steepest of their type in the nation, they are also much steeper than the state’s burdens for EMTs. The latter must complete just 150 hours (roughly 35 days) of education and pass two exams. But cosmetologists must complete 2,100 hours (roughly 490 days) of education and pass three exams, while barbers must demonstrate 1,500 hours of education and one year of experience (roughly 715 days total) and pass three exams. In 2017, South Dakota exempted hair braiders from the state’s cosmetology laws. It could expand opportunities by reducing or repealing its heavy licensing burdens for other lower-income occupations, or—if government regulation is necessary—by replacing them with less restrictive alternatives.