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Unions are generally net-negative, but economic estimates of the magnitude is relatively low. It's when they co-opt government that it really becomes a problem. When they make it impossible to build a new school to educate more, say, dental hygienists (a sort of 'white collar cleaner', who are massively overpaid relative to the service they provide if our comparison is one where it is free and easy to start a new school that can train/license them), or any of a number of different jobs where they've made it near impossible to build a school, get licensing, certification, approved facilities, etc. Then, rather than being localized teat-sucking in isolated locations in a way that can be managed, it's industry-wide and enforced by the men with guns.
FWIW, the consensus of the anti-occupational licensing crowd is that dental hygienists are underpaid because the law requires them to work under the supervision of a dentist, and the cut they have to pay the dentist is higher than the benefit they get from being licensed themselves.
Hairdressing and interior design are the canonical examples of jobs that are licensed in most states but shouldn't be (neither is licensed in most European countries).
One of those things that should have been obvious to me but that I never considered. I want my teeth cleaned 3-4 times a year. I have little interest in seeing a dentist ever. Why the hell do I have to go to a dentist office? I just want a sweet woman who knows the right amount of polite conversation to make, is gentle with the water pick and scraper, and doesn't ask me questions while a utensil is in my mouth. Why does a dentist get a cut of this arrangement.
Also, I've had great hygienists who I would return to their office indefinitely if I knew where to find them. Instead, I go to the dentist and roll the dice with whomever I get. I can't even show customer loyalty to those who excel and allow them to build a clientele.
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I'm interested; can you point me to a reference that estimates the relative effects? Thanks!
This is the famous paper, but rereading it, I realise that it only looks at the effect of regulations requiring hygienists to work under dental supervision, showing a 10% wage drop (and an even larger loss to consumers). But it doesn't estimate how much hygienists gain from restricting competition. Other work tends to give a premium >10% for licensed workers, which would imply that hygienists are net gainers. In general, most of the literature focusses on the cost to teeth of excessive regulation, not the cost or benefit to hygienists.
This is the only paper looking at both effects that I could find with a quick Google, but the author appears to have run the wrong regressions. One thing it does point out is that Connecticut is the most deregulated state on both metrics (anyone can become a dental hygienist by passing an exam, with no requirement to study at an accredited school or serve an apprenticeship, and hygienists can set up their own practices) and has the highest hygienist incomes - although this is obviously confounded by the fact that it is a high-wage state generally.
Thanks!
One comment about Connecticut in the second paper. They have the highest hygienist incomes on the chart, but the chart only shows three states and the national average. The text says, "Wages, at $67,450, and employment, at 95 DHs per 100,000, are higher than the national average, but well below the highest-ranking states."
And man, super depressing that even though Vermont has the highest number of hygienists per capita, they have one school that had only twenty-one graduates in the year they looked at (2006). That seems appalling to me. That all of the other states are worse really makes me think that we're wayyyy out from the equilibrium were we to significantly increase competition among schools and supply of trained hygienists.
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