The goal of unions is to raise wages, and unions have multiple ways they can go about achieving this goal. One method is the exclusive or craft union model, in which wage rates are boosted by reducing the supply of labor. To clarify, this doesn’t mean unions go around selectively killing laborers in order to reduce the supply. In reality, competition is limited for a specific occupational group through practices such as occupational licensing, in which a group of workers in a given occupation pressure the government to pass a law stating that their occupational group can practice only if they meet certain requirements. When a law like this is passed, members of the licensed occupation usually dominate the licensing board that administers these laws, which results in self-regulation and leads to policies that restrict entry into the occupation and consequently reduce the labor supply. Oftentimes licencing requirements include a residency requirement, which prevents interstate migration of qualified workers.
In order to understand this concept, let’s use an example of the optometry profession. Becoming an optometrist is not easy, and there are many regulations instituted that prevent a surplus of optometrists and a decrease in wage rates. First of all, there are only 23 optometry schools in the United States, and Berkeley’s incoming optometry class is comprised of 68 students, so opportunity is limited for those interested in becoming an optometrist. If students were able to graduate optometry school, they would have to go through a licensing process, which includes a writing component and a practical component. However, the practical component varies from state to state. For example, if an optometry-school graduate wanted to practice in California, he or she must take the California boards. However, if that person only took the California board, that person is limited to practicing solely in California. This licensing requirement is a further deterrent that keeps the supply of optometrists down and the wage rates up. If a person were to be successfully licensed, they then must have enough money to regularly pay required amounts to the State Board of Optometry and must be fingerprinted to ensure that they don’t have a criminal record. Furthermore, an optometrist must renew their license every two years, which requires an extra payment and fifty hours of tuition-based classes. The licensing board is optometry run, meaning that optometrists are self-regulating their own profession and determining who else is fit to be an optometrist. Therefore, optometry is a political profession.
So the next time you complain about the amount of essay questions required to apply for colleges, just remember that it’s all necessary to ensure high wages for your future.
Adrienne, this was an enlightening post. It's interesting how whole professions practice this craft union model. When you mentioned residencies, my first thought was medical doctors. They have incredibly long education and residential periods before they can become licensed physicians, and I think part of the reason is because of this model. However,for medical professionals, including ophthalmologists, the long training period may be due to the fact that these people are handling other people's lives, and that mistakes and inexperience can result in severe injury or death. I wonder how much of the exclusivity of medical doctors is due to the craft union reasoning and how much of it is due to the demands of their profession. It's an interesting balance between economics and ethics. Great post, Adrienne!
ReplyDeleteI found many parts of your post interesting. I liked how you started with a goal as people and people as workers. I liked how you took the basis of this idea and narrowed it down to optometrist and doctors and how they work for their wage. It reminded me of the discussion we had in class about people selling their skills. I think that you went really well into detail about how doctors and such work for their wages and I agree on everything you said. Especially towards the end when you mentioned how it relates to our future as students going into the working world.
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