High price competition and worker exploitation
Due to intense competition among salons, owners often cut costs by violating workers’ rights and neglecting their safety. This leads to an increase in unregistered workers and unpaid wages (Phan, 2015).
Nail salon technicians work with chemicals that are often toxic, causing respiratory and skin diseases, reproductive disorders, and even cancer (Vo, T., 2020).
Health hazards due to unregulated products
English language proficiency requirements significantly limit employment opportunities for immigrants, especially Vietnamese workers. This leads to a decline in the number of manicurists in regions with stricter language policies (Gomez et al., 2015).
Language barrier
In some states, licenses for certain professions are available only to US citizens or permanent residents. This creates additional restrictions for immigrants, who often turn to the nail care business due to a lack of other employment options (Calvo-Friedman, 2013).
Citizenship and residency requirements
In many states, entrepreneurs lack access to capital due to the absence of real estate collateral for securing loans. This makes it impossible to open businesses in an industry that often requires significant initial investments (Slivinski, 2015).
Limited access to capital for low-income entrepreneurs
Nail salons often violate labor laws. Workers face wages below the minimum standard, denial of overtime pay, unlawful fines, and even non-payment of wages altogether (Phan, D. T., 2015).
Low wages
Excessive regulation
Licensing requirements in the nail care industry create serious barriers for immigrants, particularly due to the need for extensive training hours, exams, and high fees. This severely limits opportunities for workers with low education and income levels (Slivinski, 2015).
Overview
Barriers
Licensing of Manicurists in the United States: Barriers and Opportunities for Immigrants and Low Income Citizens
Results and Discussion
Introduction
Source: Developed by the author.
The nail care industry in the US offers significant opportunities for immigrants and low-income citizens due to its low entry barrier at the initial stages and high demand for such services. Since the 1990s, first in California and later throughout the United States, immigrants have opened nail salons on a large scale, significantly improving their financial situation (Slivinski, 2015).
Entrepreneurship has provided an alternative path to financial stability, creating opportunities for self-employment and economic growth. A classic example of the American experience is the story of immigrants coming to the US in search of a better life and opening their own businesses.
A survey by the Aspen Institute found that 72% of low-income entrepreneurs increased their family income from $8,000 to $22,374 over five years. Their assets grew by an average of $15,000, and 53% rose above the poverty line. The research also suggests that entrepreneurship not only ensures self-employment but also creates jobs in local communities (Slivinski, 2015). For example, entrepreneurs often open salons in low-income communities, reducing transportation costs for residents and creating jobs, thereby stimulating regional economic growth.
The nail care industry in the US demonstrates a stable demand for services, ensuring a steady income source for immigrants and individuals with low education levels. As of 2024, over 20,000 nail salons operated in the US, with the largest number located in California, where more than 10,000 salons employed nearly 100,000 nail technicians.
In New York, the number of nail salons has tripled over the past fifteen years (Phan, 2015). A significant portion of the workforce in this industry consists of immigrants, particularly Vietnamese nationals who began migrating to the US in large numbers in the 1990s. According to Slivinski (2015), by 2000, 6% of all Vietnamese workers in the US were employed in the nail care industry, compared to just 0.04% of the general population. As a result, 42% of all manicurists in the US are Vietnamese immigrants. This phenomenon can be explained by socio-economic factors: 96% of adult Vietnamese immigrants in the US have not completed high school, severely limiting their employment prospects.
The rise in immigration to the US has consequently led to the growth of beauty salons, particularly nail care services. In recent years, salon owners have begun to experience pressure due to intense competition, which has driven down prices for nail services nationwide. Entrepreneurs have been forced to cut costs, often resorting to exploiting their employees and hiring unlicensed workers. Many business owners in these conditions have come to view state regulation, particularly licensing, as a way to reduce industry devaluation caused by the influx of immigrants (Phan, 2015; Slivinski, 2015).
First and foremost, state regulation involves a training system. Research by Slivinski S. (2015) indicates that the minimum required training for manicurists is 100 hours. However, many states impose much stricter requirements, demanding up to 600 hours of training—six times more. Although states began licensing manicurists to ensure health and safety long before the arrival of a large immigrant population, the required number of training hours in most states appears excessive given these objectives. Colorado’s Sunset Commission reported that only 90 of the mandated 350 training hours are focused on health and safety issues. Additionally, many states require manicurists to have a high school diploma or at least seven to ten years of completed education.
Regarding licensing, the US system is highly complex, with significant state-by-state differences that create substantial barriers to entering the profession. Slivinski (2015) notes that occupational licensing involves a government mandate requiring workers in certain professions to obtain official permission through training, exams, and fee payments.
In the nail care industry, these requirements include mandatory training hours. Horwitz (2015) points out that established professionals often control licensing boards, setting difficult exams and high fees to maintain a monopoly in the industry. On average, obtaining a license costs $209 and requires nearly nine months of training, which is unaffordable for low-income individuals. This reduces the availability of services, particularly for lower-income populations, who must pay higher prices due to limited competition.
Language requirements are particularly problematic for immigrant manicurists. Kleiner (2015) emphasizes that English proficiency requirements reduce immigrants’ chances of obtaining a license by 5.7%. Furthermore, the need for additional training hours decreases the likelihood of immigrant manicurists working in certain US regions by 4.5%. This restricts worker mobility, as they cannot legally provide services in other states due to varying requirements.
Snyder (2016) also highlights the social consequences of licensing, stressing that “moral character” requirements disproportionately harm minorities, particularly African Americans, as past criminal records often become a barrier to obtaining a license. This creates a dual barrier for immigrants and vulnerable groups, who face economic difficulties due to a lack of access to the educational resources necessary to obtain work permits.
As a result, the number of unlicensed salons has increased significantly. In their report for the US Department of the Treasury, Padi and Choi (2024) stress that manicurist salon licensing creates significant labor market barriers, reducing competition by encouraging a surge in unlicensed services offered at lower prices. This also increases economic inequality, as women and people of color—who are more likely to work in low-wage professions—bear the greatest financial burdens due to limited access to legal employment opportunities.
Thus, on the one hand, manicurist licensing in the US serves as a regulatory system formally aimed at protecting consumers. Horwitz (2015) notes that, from an economic perspective, licensing also reduces competition and raises service prices. In practice, however, licensing creates economic barriers for immigrants and vulnerable groups, limiting their access to the legal labor market and deepening economic inequality. Moreover, Snyder (2016) argues that licensing does not always serve consumer protection purposes but is often used to preserve monopolies in the profession.
Key barriers in the US nail care labor market for immigrants are systematized in Table 1.
Entrepreneurship has provided an alternative path to financial stability, creating opportunities for self-employment and economic growth. A classic example of the American experience is the story of immigrants coming to the US in search of a better life and opening their own businesses.
A survey by the Aspen Institute found that 72% of low-income entrepreneurs increased their family income from $8,000 to $22,374 over five years. Their assets grew by an average of $15,000, and 53% rose above the poverty line. The research also suggests that entrepreneurship not only ensures self-employment but also creates jobs in local communities (Slivinski, 2015). For example, entrepreneurs often open salons in low-income communities, reducing transportation costs for residents and creating jobs, thereby stimulating regional economic growth.
The nail care industry in the US demonstrates a stable demand for services, ensuring a steady income source for immigrants and individuals with low education levels. As of 2024, over 20,000 nail salons operated in the US, with the largest number located in California, where more than 10,000 salons employed nearly 100,000 nail technicians.
In New York, the number of nail salons has tripled over the past fifteen years (Phan, 2015). A significant portion of the workforce in this industry consists of immigrants, particularly Vietnamese nationals who began migrating to the US in large numbers in the 1990s. According to Slivinski (2015), by 2000, 6% of all Vietnamese workers in the US were employed in the nail care industry, compared to just 0.04% of the general population. As a result, 42% of all manicurists in the US are Vietnamese immigrants. This phenomenon can be explained by socio-economic factors: 96% of adult Vietnamese immigrants in the US have not completed high school, severely limiting their employment prospects.
The rise in immigration to the US has consequently led to the growth of beauty salons, particularly nail care services. In recent years, salon owners have begun to experience pressure due to intense competition, which has driven down prices for nail services nationwide. Entrepreneurs have been forced to cut costs, often resorting to exploiting their employees and hiring unlicensed workers. Many business owners in these conditions have come to view state regulation, particularly licensing, as a way to reduce industry devaluation caused by the influx of immigrants (Phan, 2015; Slivinski, 2015).
First and foremost, state regulation involves a training system. Research by Slivinski S. (2015) indicates that the minimum required training for manicurists is 100 hours. However, many states impose much stricter requirements, demanding up to 600 hours of training—six times more. Although states began licensing manicurists to ensure health and safety long before the arrival of a large immigrant population, the required number of training hours in most states appears excessive given these objectives. Colorado’s Sunset Commission reported that only 90 of the mandated 350 training hours are focused on health and safety issues. Additionally, many states require manicurists to have a high school diploma or at least seven to ten years of completed education.
Regarding licensing, the US system is highly complex, with significant state-by-state differences that create substantial barriers to entering the profession. Slivinski (2015) notes that occupational licensing involves a government mandate requiring workers in certain professions to obtain official permission through training, exams, and fee payments.
In the nail care industry, these requirements include mandatory training hours. Horwitz (2015) points out that established professionals often control licensing boards, setting difficult exams and high fees to maintain a monopoly in the industry. On average, obtaining a license costs $209 and requires nearly nine months of training, which is unaffordable for low-income individuals. This reduces the availability of services, particularly for lower-income populations, who must pay higher prices due to limited competition.
Language requirements are particularly problematic for immigrant manicurists. Kleiner (2015) emphasizes that English proficiency requirements reduce immigrants’ chances of obtaining a license by 5.7%. Furthermore, the need for additional training hours decreases the likelihood of immigrant manicurists working in certain US regions by 4.5%. This restricts worker mobility, as they cannot legally provide services in other states due to varying requirements.
Snyder (2016) also highlights the social consequences of licensing, stressing that “moral character” requirements disproportionately harm minorities, particularly African Americans, as past criminal records often become a barrier to obtaining a license. This creates a dual barrier for immigrants and vulnerable groups, who face economic difficulties due to a lack of access to the educational resources necessary to obtain work permits.
As a result, the number of unlicensed salons has increased significantly. In their report for the US Department of the Treasury, Padi and Choi (2024) stress that manicurist salon licensing creates significant labor market barriers, reducing competition by encouraging a surge in unlicensed services offered at lower prices. This also increases economic inequality, as women and people of color—who are more likely to work in low-wage professions—bear the greatest financial burdens due to limited access to legal employment opportunities.
Thus, on the one hand, manicurist licensing in the US serves as a regulatory system formally aimed at protecting consumers. Horwitz (2015) notes that, from an economic perspective, licensing also reduces competition and raises service prices. In practice, however, licensing creates economic barriers for immigrants and vulnerable groups, limiting their access to the legal labor market and deepening economic inequality. Moreover, Snyder (2016) argues that licensing does not always serve consumer protection purposes but is often used to preserve monopolies in the profession.
Key barriers in the US nail care labor market for immigrants are systematized in Table 1.
/ VR Training
Lighting Considering directions for improving licensing in the US nail care industry, the study examined Liang, X. (2022), which outlines key areas of government regulatory development in this sector.
One of the main areas for improving licensing involves reducing or completely eliminating licensing requirements in professions where there is no direct threat to consumers’ health or safety. The experience of states like Michigan and Arizona, where several professions have been deregulated, demonstrates that this approach promotes job creation and mitigates labor shortages in certain industries. However, such reforms often face resistance from licensing boards and professional associations lobbying to maintain licensing standards (Liang, 2022).
Removing restrictions on licensing eligibility for individuals with criminal records is another critical area of reform. Laws enacted in states such as Iowa, Michigan, Georgia, and Florida have limited the ability to deny licenses based solely on past criminal convictions, provided the offenses are unrelated to professional duties. This significantly increases employment access for socially vulnerable groups (Liang, 2022).
Access to professional licensing for immigrants also requires significant changes. For example, California allows all immigrants with an Individual Taxpayer Identification Number (ITIN), including those without legal status, to obtain licenses. Florida, Illinois, and New York have extended licensing access to DACA recipients. However, such opportunities remain limited in states like Texas, Georgia, Arizona, and Virginia (Liang, 2022).
One of the key issues is the high cost of education and licensing fees. For instance, cosmetology training in Texas can cost between $5,000 and $15,000, up to $22,000 per year in California, and $15,000 for eight months in New York. Exam fees range from $50 to $1,500, depending on specialization. Lowering costs and reducing training duration would improve access to the professional market for low-income individuals (Liang, 2022).
For those with foreign education, it is essential to reduce certification costs for educational documents. Currently, the cost of such certification ranges from $200 to $700. Simplifying this process could help increase the number of qualified workers in the labor market (Liang, 2022).
All these directions aim to reduce regulatory burdens, simplify licensing procedures, create equal opportunities for workers, and enhance economic mobility.
One of the main areas for improving licensing involves reducing or completely eliminating licensing requirements in professions where there is no direct threat to consumers’ health or safety. The experience of states like Michigan and Arizona, where several professions have been deregulated, demonstrates that this approach promotes job creation and mitigates labor shortages in certain industries. However, such reforms often face resistance from licensing boards and professional associations lobbying to maintain licensing standards (Liang, 2022).
Removing restrictions on licensing eligibility for individuals with criminal records is another critical area of reform. Laws enacted in states such as Iowa, Michigan, Georgia, and Florida have limited the ability to deny licenses based solely on past criminal convictions, provided the offenses are unrelated to professional duties. This significantly increases employment access for socially vulnerable groups (Liang, 2022).
Access to professional licensing for immigrants also requires significant changes. For example, California allows all immigrants with an Individual Taxpayer Identification Number (ITIN), including those without legal status, to obtain licenses. Florida, Illinois, and New York have extended licensing access to DACA recipients. However, such opportunities remain limited in states like Texas, Georgia, Arizona, and Virginia (Liang, 2022).
One of the key issues is the high cost of education and licensing fees. For instance, cosmetology training in Texas can cost between $5,000 and $15,000, up to $22,000 per year in California, and $15,000 for eight months in New York. Exam fees range from $50 to $1,500, depending on specialization. Lowering costs and reducing training duration would improve access to the professional market for low-income individuals (Liang, 2022).
For those with foreign education, it is essential to reduce certification costs for educational documents. Currently, the cost of such certification ranges from $200 to $700. Simplifying this process could help increase the number of qualified workers in the labor market (Liang, 2022).
All these directions aim to reduce regulatory burdens, simplify licensing procedures, create equal opportunities for workers, and enhance economic mobility.
To study the manicurist licensing system in the US, both qualitative and quantitative approaches were applied. An analysis of literary sources, official reports, and scientific articles (Slivinski, 2015; Phan, 2015; Liang, 2022), as well as a comparative analysis of regulatory practices in different states, was conducted. The socio-economic approach allowed an evaluation of the impact of licensing on the income and working conditions of immigrants. The systemic approach ensured a comprehensive consideration of the licensing system as a complex structure influencing the labor market and regional development.
Methods and Materials
The purpose of the article is to study the impact of the manicurist licensing system in the US on immigrants and low-income citizens. To achieve this goal, the following tasks must be completed during the study: review the industry, identify regulatory barriers, analyze economic opportunities, assess social consequences, and propose ways to improve the licensing system.
References
Conclusions
Table 1. Barriers to entering the US nail care market for immigrants
Vo, T. (2020). My nails, your health: An analysis of literature promoting health among low-wage Asian immigrant women nail salon technicians in the United States. Columbia University Academic Commons.
Snyder, T. J. (2016). The effects of Arkansas’ occupational licensure regulations. The Arkansas Center for Research in Economics.
Slivinski, S. (2015). Bootstraps tangled in red tape: How state occupational licensing hinders low-income entrepreneurship. Policy Report, (272), 3–28.
Phan, D. T. (2015). Unpretty Nails: Addressing workers rights violation within the Vietnamese nail salon industry. UCLA Asian Pacific American Law Journal, (21), 81–106.
Padi, M., & Choi, G. (2024). Inclusive occupational licensing. California Law Review.
Mulholland, S. E., & Young, A. T. (2016). Occupational licensing and interstate migration. Cato Journal, 36(1), 17–31.
Liang, X. (2022). Three essays on immigration and occupational licensing in the United States (Doctoral dissertation). Texas Tech University.
Kleiner, M. M. (2015). Reforming occupational licensing policies. University of Minnesota.
Horwitz, S. (2015). Breaking down the barriers: Three ways state and local governments can improve the lives of the poor. Mercatus Research Series.
Gomez, R., Gunderson, M., Huang, X., & Zhang, T. (2015). Do immigrants gain or lose by occupational licensing? Canadian Public Policy, 41(Supplement 1), 80–97.
Calvo-Friedman, J. (2014). The uncertain terrain of state occupational licensing laws for noncitizens: A preemption analysis. Georgetown Law Journal, 102(5), 1597–1645.
Problem Statement
The issue of manicurist licensing in the United States has been well studied in international academic literature. Significant contributions to this topic have been made by researchers such as J. Calvo-Friedman (2013), who analyzed legal aspects of licensing for foreigners, focusing on issues of legal uncertainty and regulatory intervention. R. Gomez and colleagues (2015) examined the impact of licensing on immigrants’ economic opportunities in Canada, allowing conclusions to be extrapolated to similar systems in the US.
Important contributions were also made by M. M. Kleiner (2015), who proposed ways to reform licensing policy, and S. E. Mulholland and A. T. Young (2016), who studied the impact of licensing on interstate migration, showing how regulatory barriers limit labor mobility. Research by X. Liang (2022) focused on immigrants in the US, highlighting the challenges of accessing licensed professions.
The socio-economic consequences of excessive regulation were detailed by S. Slivinski (2015), who argued that strict licensing requirements limit entrepreneurial opportunities for low-income groups. In this context, T. J. Snyder (2016) examined regional regulatory norms in Arkansas, revealing their negative impact on the state’s economy. Special attention has been given to issues of health and social protection. D. T. Phan (2015) and T. Vo (2020) examined working conditions for Asian immigrant women in the nail care industry, highlighting issues of discrimination and health protection. Opportunities for inclusive licensing were studied by M. Padi and G. Choi (2024), who proposed integrative regulatory models.
Expert publications in modern online journals, which cover recent aspects of licensing in various US states, were also used for analysis.
Despite the considerable amount of literature on this topic, there is still a lack of systematic material. Therefore, using various scientific research methods, information was analyzed, grouped, and systematized, allowing it to be presented in the context of the study.
Important contributions were also made by M. M. Kleiner (2015), who proposed ways to reform licensing policy, and S. E. Mulholland and A. T. Young (2016), who studied the impact of licensing on interstate migration, showing how regulatory barriers limit labor mobility. Research by X. Liang (2022) focused on immigrants in the US, highlighting the challenges of accessing licensed professions.
The socio-economic consequences of excessive regulation were detailed by S. Slivinski (2015), who argued that strict licensing requirements limit entrepreneurial opportunities for low-income groups. In this context, T. J. Snyder (2016) examined regional regulatory norms in Arkansas, revealing their negative impact on the state’s economy. Special attention has been given to issues of health and social protection. D. T. Phan (2015) and T. Vo (2020) examined working conditions for Asian immigrant women in the nail care industry, highlighting issues of discrimination and health protection. Opportunities for inclusive licensing were studied by M. Padi and G. Choi (2024), who proposed integrative regulatory models.
Expert publications in modern online journals, which cover recent aspects of licensing in various US states, were also used for analysis.
Despite the considerable amount of literature on this topic, there is still a lack of systematic material. Therefore, using various scientific research methods, information was analyzed, grouped, and systematized, allowing it to be presented in the context of the study.
Literature Review
Keywords: licensing, nail care industry, immigrants, regulatory barriers, socio-economic impact
Manicurist licensing in the US is a crucial topic due to its significant impact on the economic integration of immigrants and low-income citizens. The nail care industry serves as a key small business sector, providing employment for thousands of people, especially in densely populated states like California and New York. However, strict licensing requirements become barriers for many workers, limiting access to the legal labor market and fostering the development of the informal economy. The purpose of the study is to determine the impact of the manicurist licensing system in the US on the socio-economic status of immigrants and low-income citizens. The study employed both qualitative and quantitative approaches. An analysis of literary sources, official reports, and scientific publications on licensing practices in various US states was conducted. The socio-economic approach allowed an assessment of the impact of regulatory requirements on immigrants’ income and working conditions. The systemic approach provided a comprehensive analysis of the licensing system’s influence on the labor market and regional development. The study’s results indicate that the nail care industry serves as an important income source for immigrants and individuals with low educational levels. However, licensing creates significant barriers due to high financial costs, extensive training requirements, and mandatory language proficiency standards. In some states, the licensing process is further complicated by additional conditions such as proof of legal status. This leads to the expansion of the informal labor market, where workers earn lower wages and lack social protections. Manicurist licensing in the US requires significant reforms to ensure equal access to the professional market. Reducing regulatory barriers, eliminating language requirements, shortening training hours, and lowering fees would promote greater employment opportunities for immigrants. Improving conditions in this sector is possible through state-supported programs and social initiatives that stimulate small business development and economic integration.
Abstract
Manicurist licensing in the United States is a vivid example of how government regulations can affect the level of entrepreneurship among low-skilled population groups. Since the early 1990s, Vietnamese immigrants have actively established their own businesses in the nail care industry, facing numerous barriers, including mandatory licensing requirements. These requirements range from 100 to 600 hours of training at state-approved cosmetology schools. Currently, approximately 300,000 immigrants are subject to state regulation in the nail care sector. Those who meet the licensing conditions enter the market, while others, for whom training and fees are unaffordable, remain in the informal sector.
Manicurist licensing in the US illustrates how government regulations can hinder entrepreneurial potential among vulnerable populations, contributing to economic inequality and limiting socio-economic development. This underscores the need to reconsider current licensing policies to ensure equal opportunities for all entrepreneurs, regardless of their socio-economic status.
Manicurist licensing in the US illustrates how government regulations can hinder entrepreneurial potential among vulnerable populations, contributing to economic inequality and limiting socio-economic development. This underscores the need to reconsider current licensing policies to ensure equal opportunities for all entrepreneurs, regardless of their socio-economic status.
The nail care industry in the US remains one of the most important small business sectors, providing a stable source of income for immigrants and individuals with limited education. As of 2024, more than 20,000 nail salons operate nationwide, with the largest concentrations in California and New York. Stable demand for services supports local economic development by creating additional jobs and reducing social tensions.
However, the licensing process in the nail care industry continues to pose significant challenges for immigrants. Excessive training hour requirements, difficult exams, and high fees limit access to legal employment. Some states also maintain language proficiency requirements and demand proof of citizenship or legal status, significantly restricting immigrants’ professional opportunities.
As a result, many workers are forced to operate without licenses or accept much lower wages, creating economic inequality and fostering the informal economy.
Despite these difficulties, the outlook for improving conditions in the nail care industry remains positive. Some states have already begun lowering regulatory barriers, eliminating unnecessary licenses, and simplifying licensing access for immigrants. Eliminating language requirements, reducing training hours, and lowering licensing fees could significantly increase access to the professional market.
With the support of government programs, community organizations, and social initiatives, the nail care business has the potential to create more jobs and promote the economic integration of immigrants in the US.
However, the licensing process in the nail care industry continues to pose significant challenges for immigrants. Excessive training hour requirements, difficult exams, and high fees limit access to legal employment. Some states also maintain language proficiency requirements and demand proof of citizenship or legal status, significantly restricting immigrants’ professional opportunities.
As a result, many workers are forced to operate without licenses or accept much lower wages, creating economic inequality and fostering the informal economy.
Despite these difficulties, the outlook for improving conditions in the nail care industry remains positive. Some states have already begun lowering regulatory barriers, eliminating unnecessary licenses, and simplifying licensing access for immigrants. Eliminating language requirements, reducing training hours, and lowering licensing fees could significantly increase access to the professional market.
With the support of government programs, community organizations, and social initiatives, the nail care business has the potential to create more jobs and promote the economic integration of immigrants in the US.
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