North Carolina has one of the nation’s most stringent occupational licensing regimes. That means this state erects more obstacles than most of its peers when it comes to allowing people to enter a chosen profession. This policy hits low-income and less educated residents the hardest.

Jon Sanders, the John Locke Foundation’s director of regulatory studies, discussed the negative impact of licensing on the state’s economy and outlined alternatives to the current licensing system during a speech for JLF’s Shaftesbury Society.

In the video clip below, Sanders employs a “safety and quality policy pyramid” that should help policymakers decide when licensing makes sense.

3:20 update: Click play below to watch the full presentation.