Report
Occupational Licensing of Uber Drivers
Abstract: 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.
JEL Classification: L10; J89; K29; J48; J00; L80; J44;
https://doi.org/10.21034/sr.687
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File(s): File format is application/pdf https://www.minneapolisfed.org/research/sr/sr687.pdf
Bibliographic Information
Provider: Federal Reserve Bank of Minneapolis
Part of Series: Staff Report
Publication Date: 2026-08-25
Number: 687