Final answer:
Background checks for licensure are conducted to prevent individuals with disqualifying criminal backgrounds from entering certain professions that require trust and safety. These occupations include fields in healthcare, law, education, and many service industries. Government agencies assess the value of licensure-related information versus the negative effects on competition.
Step-by-step explanation:
Background checks are run when applying for licensure to ensure that individuals do not have criminal backgrounds that could interfere with the responsibilities of their profession. This practice is crucial in professions such as doctors, teachers, nurses, engineers, accountants, and lawyers, as well as various other licensed roles like barbers, embalmers, and real estate brokers. These checks help to maintain trust in these occupations and protect the public by ensuring that those licensed to perform certain tasks have not engaged in activities that would disqualify them from practicing safely and effectively.
Licensure is a tool used in the labor market to ensure quality and convey that a person has achieved a certain level of education or passed requisite tests. However, occupational licenses also present barriers that can impede new entries into the field, affecting competition and potentially leading to higher prices and reduced consumer choice. The government thus weighs the benefits of additional information provided by licenses against the negative impacts on market competition.