Columbus, OH – At a press conference with Ohio Senate President Larry Obhof and Dr. James Broughel, a research fellow with the Mercatus Center at George Mason University, The Buckeye Institute’s president and chief executive officer Robert Alt highlighted the negative impact of government regulations on Ohio’s economic growth and the burden of occupational licensing specifically.

The press conference released A Snapshot of Ohio Regulation in 2018, which found that Ohio is one of the most heavily regulated states with nearly 247,000 restrictions, far more than neighboring states like Michigan, Pennsylvania, Kentucky, and West Virginia.

“We have long known that Ohio’s regulatory system is hurting our economy and hurting Ohio workers. This new Mercatus research draws a stark comparison between what businesses and employees in Ohio experience versus our neighboring states,” said Robert Alt, president and chief executive officer at The Buckeye Institute. “This isn’t just a story of the number of regulations, this is a story of people. People who want to enter a new career field but can’t due to the costs. People who want a promotion at work they are qualified for save for a simple piece of paper that says the word license. People who want to build a better future for themselves and their families. We must remember these people when looking at occupational licensing.”

The Impact of Occupational Licensing

• Ohio likely sacrifices tens of thousands of potential jobs due to occupational licensing.
• A report by The Buckeye Institute found that the burden of Ohio’s occupational licensing requirements has a greater impact on middle-aged and low-income workers, and those without a college degree.
• According to the Hamilton Project, 18 percent of Ohioans require an occupational license in order to earn a living in their chosen profession.
• A W.E. Upjohn Institute study revealed that the cost of hiring a licensed worker is approximately 15 percent higher than an unlicensed worker with the same level of experience doing the same job.
• The Foundation for Economic Education found that households in Ohio could save $775 per year with occupational licensing reform.

In his remarks, Alt highlighted the story of Dawn Hochwalt, a salon manager from Dayton, Ohio who sees first-hand how Ohio’s burdensome regulations impact her employees and her business, with little to no benefit to public health and safety. She also sees the impact the rising costs of cosmetology school has on her colleagues whose wages are being garnished to repay student loans. As Hochwalt said recently, “When I was in school it cost around $6,000 to go to school and get a license, now that cost is $20,000 or more. That debt is putting a tremendous burden on young people and the 1,500 hours they need to earn their license means they are not able to get on the salon floor to earn a living and pay off their debt.”

Reforms such as those found in Senate Bill 255, which would permit licensing only in clear cut and verifiable cases to ensure public safety, and reforms such as those found in House Bill 189, which would lower the number of hours needed for a cosmetology license from 1,500 to 1,000 (the same number of hours as required in New York) would make it easier for Ohioans to begin their careers, earn a living, and move ahead in their chosen field.

# # #