Freakonomics Radio 621. Is Professional Licensing a Racket?
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Feb 7, 2025 
Rebecca Allensworth, a Vanderbilt law professor and author of "The Licensing Racket," critiques the pervasive system of professional licensing in the U.S. She reveals how licensing began in medicine and law but now extends to diverse fields like hairstyling and auctioneering, often creating barriers for qualified workers. Allensworth explores the self-dealing nature of licensing boards, their failure to protect the public, and the hidden costs totaling $250 billion annually. Her insights challenge listeners to rethink the necessity and ethics of these regulations.
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The LaPaglia Case
- Dr. Michael LaPaglia, despite multiple offenses involving drug dealing and COVID test fraud, received repeated chances from the medical board.
- His license was only revoked after public exposure and a federal prison sentence.
Criminal Proceedings and Licensing
- Criminal proceedings against licensed professionals often hinder licensing board action due to Fifth Amendment concerns.
- This can lead to delays in disciplinary action, with criminal judges making licensing decisions, and eventual leniency from boards.
Disciplined Lawyers and Vulnerable Clients
- Disciplined lawyers often shift towards vulnerable clients like those in immigration, injury law, or indigent defense.
- Further research is needed to analyze how these disciplinary actions affect legal services for lower-income individuals.
