Co-authored Op-Ed on occupational regulation policy development in China
Published by the Knee Center for the Study of Occupational Regulation, July 2021
Regulation has costs and benefits, and it is important to use the appropriate regulatory tool to accomplish the desired objective. Occupational licensing is the most stringent regulation and it should not be the default solution and should only be used if absolutely necessary.
Regulations should be designed to limit uncertainty and disruption in communication between workers and firms. Chinese policy makers recognized that employers in many cases were best positioned to evaluate the skills of prospective job seekers and could shoulder the responsibility of evaluating skills. In some cases, more stringent regulation was necessary, but not in all cases.
The regulatory framework should be appropriately constructed to rightly balance the need for consumer protection without imposing unnecessary costs.