Should the US Eliminate Entry Barriers to the Practice of Law? Perspectives Shaped by Industry Deregulation
- (pp. 171-76)
AbstractStates' requirements that lawyers obtain a license to practice law, as well as American Bar Association (ABA) regulations of legal practice, constitute barriers to entry to the legal profession. In this paper, we argue that eliminating entry barriers in legal services would generate benefits that are similar to those resulting from deregulating U.S. network industries (i.e., transportation, communications, and energy.) Specifically, prices would fall as competition from incumbent firms and new entrants intensifies; in the long run, competitive forces and operating freedom would incentivize firms to produce innovations that significantly benefit consumers and the broader economy.
Citation2016. "Should the US Eliminate Entry Barriers to the Practice of Law? Perspectives Shaped by Industry Deregulation." American Economic Review, 106 (5): 171-76. DOI: 10.1257/aer.p20161001
- J44 Professional Labor Markets; Occupational Licensing
- K40 Legal Procedure, the Legal System, and Illegal Behavior: General
- L84 Personal, Professional, and Business Services