Stephen Dubner

That's coming up after the break. I'm Stephen Dubner. This is Freakonomics Radio. We'll be right back. The legal scholar Rebecca Allensworth spent years investigating the power, reach and shortcomings of professional licensing boards. Here's how she puts it in her book, The Licensing Racket. When it came to barriers to entry and restrictions on practice, boards went too far.

When it came to disciplining dangerous providers, they didn't go nearly far enough. Before the break, Allensworth told us about the disciplining problem, but she argues that the lockout effect of professional licensing is also damaging.

When it came to disciplining dangerous providers, they didn't go nearly far enough. Before the break, Allensworth told us about the disciplining problem, but she argues that the lockout effect of professional licensing is also damaging.

When it came to disciplining dangerous providers, they didn't go nearly far enough. Before the break, Allensworth told us about the disciplining problem, but she argues that the lockout effect of professional licensing is also damaging.

When you look across the labor force in the U.S., you say that roughly one in five workers in America do a job that requires a license. What do you think is the appropriate share of workers? Should it be a third of that? Should it be a tenth of that?

When you look across the labor force in the U.S., you say that roughly one in five workers in America do a job that requires a license. What do you think is the appropriate share of workers? Should it be a third of that? Should it be a tenth of that?

When you look across the labor force in the U.S., you say that roughly one in five workers in America do a job that requires a license. What do you think is the appropriate share of workers? Should it be a third of that? Should it be a tenth of that?

The medical and legal professions, how big are they as a part of the whole workforce?

The medical and legal professions, how big are they as a part of the whole workforce?

The medical and legal professions, how big are they as a part of the whole workforce?

They'd have to change their name, though, wouldn't they?

They'd have to change their name, though, wouldn't they?

They'd have to change their name, though, wouldn't they?

Everybody wants to see that nurse.

Everybody wants to see that nurse.

Everybody wants to see that nurse.

You write that professional licensing is, quote, an especially onerous form of regulation erecting high financial and educational barriers and that it therefore has a big effect on, quote, equality, public health, the economy and the American dream. So that's a lot.

You write that professional licensing is, quote, an especially onerous form of regulation erecting high financial and educational barriers and that it therefore has a big effect on, quote, equality, public health, the economy and the American dream. So that's a lot.

You write that professional licensing is, quote, an especially onerous form of regulation erecting high financial and educational barriers and that it therefore has a big effect on, quote, equality, public health, the economy and the American dream. So that's a lot.

OK, so that's how licensing hurts the American dream. How about the other categories, the economy, public health, equality?