occupational licensing

Businesses often use regulations as a cudgel to bludgeon their competitor. Occupational licensing is one of the most-abused types of regulation. John Stossel’s latest column shows how by telling the story of Jestina Clayton, an immigrant from Africa who braids hair for a living.

Her customers are satisfied. But now her competitors want her to take 2,000 hours of classes and spend thousands of dollars to get a cosmetology license. This even though braiding is the only service Jestina offers. And because the her competitors are the very people who grant or deny licenses, it will be easy for them to keep entrepreneurs like Jestina out of business even after she completes the licensing requirements.

Jestina’s story repeats itself every day in any number of occupations. Stossel writes:

Once upon a time, one in 20 workers needed government permission to work in their occupation. Today, it’s one in three. We lose some freedom every day.

“Occupational licensing laws fall hardest on minorities, on poor, on elderly workers who want to start a new career or change careers,” Avelar said. “(Licensing laws) just help entrenched businesses keep out competition.”

This is not what America was supposed to be.

He’s right.

Three cheers for horse dentists in Texas and the Institute of Justice (IJ) which took up their defense. After three years, IJ and the horse dentists (aka “floaters”) won their legal battle with the board of Veterinary Medical Examiners in the state, which attempted to put a halt to the specialized business of equine dentistry — unless they could get in on the profit.

Veterinarians claimed that horse dentists, since they are not licensed veterinarians, should not be allowed to operate on horses without the direct supervision of a licensed vet. While floaters won this time, the fight is far from over. Vets claim that they are only worried about horse safety that “unskilled floaters will damage the horse’s gums or strip away protective enamel,” but this is really about elitism and the protection of profits from competition. Vets are angry that floaters can bypass their licensing regime and their would-be monopoly on the animal welfare industry.

Full disclosure: my father is an equine dental technician. That gives me some bias, but also a little insight to say that the claim that equine dentists are “unskilled” is total bunk.

As this article in The Wall Street Journal puts it:

Horse-teeth floating is a lucrative job. Some practitioners say they can make $300,000 a year, and those who do say it’s straightforward and requires no special training.

There are few equine dentists with “no specialized training.” Simply working around horses requires a specialized set of skills, often acquired over years of interacting with the animals-a skill set that few veterinarians have. Equine dentists, like farriers (the guys who shoe horses) often come from families who have many generation involved in the trade. Parents pass along the skills of the craft to their children; they may not have a veterinary license, but they certainly aren’t unskilled. For those would-be floaters not born into equine families, like my father, there are schools which train hopefuls in things like equine anatomy, immunology, restraint techniques, equine nutrition, tooth extraction, bacteriology, while giving them in-field training and apprenticeships with certified equine dental technician.

It’s unlikely that any horse owner would choose an “unskilled” floater in a town with other certified equine dental technicians competing for their business. In very rural towns there may not be competition, but even then an untrained (meaning unlicensed, not necessarily inexperienced) floater will probably be more savvy around horses than any licensed veterinarian. An unlicensed floater is better than no floater at all.

As my colleague Ryan Young put it in his blog on the topic:

As horses age, their teeth often wear down into points. This can cause the animals great pain if they bite into their tongue or cheeks. Chewing can also become problematic. A horse floater’s job is to keep that from happening. They are a kind of equine dental specialist. Floaters anesthetize the animal then grind its teeth into smoother shapes.

Unattended dental problems can lead to sharp teeth. The sharp teeth can make equipment used in riding painful, it also makes eating painful and awkward which could result in malnutrition,  starvation, and death.

If veterinarians really cared about horses they would want more floaters in the market — not less.

Image credit: Coach Ronny’s flickr photostream.

Government does more wacky things than anyone could possibly write about in any detail. Listed here are just a few that I dug up over the course of the week. If you have more, I’d love to hear about them.

- 206 occupations require licenses in New Jersey.

- Federal money is paying for a museum exhibit called “Race to the End of the Earth.” (Note: the earth is round.)

- In the market for a new air conditioner? Act fast, because new regulations are on the way.

- The federal government pays for a website that monitors jellyfish sightings.

- Fear not: the federal government has a Potato Research and Promotion Plan.

- Last year, the feds started a Dairy Industry Advisory Committee. Let the rent-seeking begin!

- And finally: 2,000 House staffers make $100,000 or more per year.

You need a license to be a bounty hunter in New Jersey. You can apply by clicking here.

The license comes with a cool bounty hunter identification card that you must keep on your person whenever you’re on the job.

But let’s not get ahead of ourselves. There are lots of hoops to jump through first. For one, you need valid photo ID. And you need to pass a criminal background check, and give five character references.

You must also have at least five years of experience in either bounty hunting, law enforcement, or a related field. No one under the age of 25 may be a bounty hunter.

The license fee costs $300; biennial renewal costs $200.

You also need to take a 2-day, 16-hour bounty hunter training course at the Middlesex County Fire Academy in Sayreville. Topics covered range from Constitutional law to proper boundaries on the use of force.

If you want to hire a secretary or other administrative worker, that employee has to register with the New Jersey State Police and go through a background check at his or her own expense. If the employee quits or is fired, you have to let the state know within ten days.

If you can get through all that, happy hunting!

It is illegal to be a peddler in Wisconsin without a license. One of the requirements is five years of residency in Wisconsin. Because clearly, no one is trustworthy unless they’ve lived in Wisconsin for at least five years. The full list of requirements is here.

You can apply for your peddler’s license here.

(Hat tip to Jim Ulbright)

It is illegal to conduct an auction without a license in Alabama. Unlicensed auctioneers can be punished with fines of up to $500.

Applicants must pay nearly a thousand dollars for 85 hours of coursework. 8 additional hours are required every two years to keep the license.

It’s worth asking: Does this benefit anyone besides the people teaching the courses and the auctioneers who get to limit the amount of competition they have to face?