Occupational Licensing of Uber Drivers
We examine whether occupational licensing improves service quality and safety using trip-level Uber data that include driver ratings and telematics-based measures of driving behavior. Exploiting quasi-random assignment from proximity-based dispatch, we compare trips served by licensed and unlicensed drivers in two settings: a cross-border comparison between New York City and New Jersey, and a deregulation event in Houston. Across settings and specifications, including instrumental variable estimates, we find no consistent evidence that licensing improves consumer outcomes. In Houston, post-deregulation entrants are indistinguishable from previously licensed drivers on ratings and driving behavior, despite differing markedly in experience and age.
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Copy CitationJonathan Hall, Jason Hicks, Morris M. Kleiner, and Yun taek Oh, "Occupational Licensing of Uber Drivers," NBER Working Paper 35635 (2026), https://doi.org/10.3386/w35635.Download Citation