Absence of conflict of interest.
Citation
Hicks, J. F. (2022). Essays on historical and contemporary occupational licensing in the United States. [Doctoral dissertation, University of Minnesota]. University Digital Conservancy. https://conservancy.umn.edu/items/4c8b279c-49df-4417-89fd-f0e88b74cfeb [New York City / New Jersey]
Highlights
- The study's objective was to examine the impact of occupational licensing requirements for transportation network company drivers on the safety and quality of rides. This profile summarizes findings from New Jersey. The author investigated similar research questions for an implementation of occupational licensing requirements in Houston, Texas, the profile of which can be found here.
- The author conducted a nonexperimental study to compare the quality and safety of rides in New Jersey provided by New York City based Uber drivers subject to an occupational licensure requirement to rides provided by New Jersey based Uber drivers not subject to an occupational licensure requirement. The author conducted statistical models using trip-level data provided by Uber, a transportation network company.
- The study suggested that rides in New Jersey provided by New York City based Uber drivers with an occupational license received lower average ride quality ratings but higher average ride safety indicators than rides provided by New Jersey based Uber drivers without an occupational license.
- The quality of causal evidence presented in this report is low. This means we are not confident that the estimated effects are attributable to occupational licensing requirements for transportation network company drivers; other factors are likely to have contributed.
Intervention Examined
Occupational Licensing
Features of the Intervention
In New York City, Uber drivers must meet many requirements to get an occupation license. They need to complete a defensive driving course, a Wheelchair Accessible Vehicle class, and a 24-hour For Hire Vehicle course. They also need to pass a fingerprint background check. This licensure process costs at least $2,000 upfront. In contrast, Uber drivers in New Jersey do not need an occupational license to operate. New Jersey allows both New York City-based and New Jersey-based Uber drivers to pick up passengers in New Jersey.
Features of the Study
The author conducted a nonexperimental study to compare the quality and safety of rides in New Jersey provided by New York City Uber drivers with an occupational license (“licensed”) to those provided by New Jersey Uber drivers without an occupational license (“unlicensed”).
The author leveraged the quasi-random assignment of licensed and unlicensed drivers to pick up passengers since Uber's dispatch algorithm assigned rides based on how close drivers were to riders regardless of their occupational licensure. The study examined all UberX trips in New Jersey performed between July 18, 2016, and July 15, 2017, by licensed New York City Uber drivers and unlicensed New Jersey Uber drivers. The sample included 481,474 trips in New Jersey performed by licensed New York City Uber drivers and 983,114 trips in New Jersey performed by unlicensed New Jersey Uber drivers. In the trip-level analysis sample, the treatment group consisted of trips performed by a licensed driver when the licensed driver had the shortest estimated time of arrival (ETA) to the pickup location, and an unlicensed driver had the second shortest ETA. The comparison group consisted of trips performed by an unlicensed driver when the unlicensed driver had the shortest ETA to the pickup location and a licensed driver had the second shortest ETA.
Using trip-level data provided by Uber, the author measured trip quality using star ratings provided by passengers and trip safety using the percentage of hard brakes and accelerations measured with telematics data.
Findings
Attitudes
- The study suggested that, on average, rides in New Jersey performed by licensed New York City Uber drivers received lower star ratings from their passengers than rides provided by unlicensed New Jersey Uber drivers.
Health and safety
- The study suggested that rides in New Jersey performed by licensed New York City Uber drivers had lower fractions of hard brakes on their trips than rides performed by unlicensed New Jersey Uber drivers.
- The study suggested that rides in New Jersey performed by licensed New York City Uber drivers had lower fractions of hard accelerations on their trips than rides performed by unlicensed New Jersey Uber drivers.
- The study suggested that rides in New Jersey performed by licensed New York City Uber drivers were less likely to have greater than 20% hard brakes than rides performed by unlicensed New Jersey Uber drivers.
- The study suggested that rides in New Jersey performed by licensed New York City Uber drivers were less likely to have greater than 20% hard accelerations than rides performed by unlicensed New Jersey Uber drivers.
Considerations for Interpreting the Findings
Although the author controlled for driver age and sex, the author did not account for other factors or driver characteristics that could have affected the difference between the treatment and comparison groups. Thus, preexisting differences between the treatment and comparison groups—and not the driver’s occupational licensure status —could explain the observed differences in outcomes. Therefore, the study is not eligible for a moderate causal evidence rating, the highest rating available for nonexperimental designs.
Causal Evidence Rating
The quality of causal evidence presented in this report is low. This means we are not confident that the estimated effects are attributable to occupational licensing requirements for transportation network company drivers; other factors are likely to have contributed.