Occupational licensing in intermediate-skill occupations: The case of drivers in the land transport industry

This article examines the outcomes of occupational licensing in a set of large, intermediate-skill occupations in the land transport industry. The article explores the significance of licensing systems in these occupations and finds that land transport drivers are licensed for conformance and that conformance licensing systems are very different from those of the high-skill licensing systems extant in the professions. Conformance licensing places little emphasis upon the development of skill and expertise, and the regulatory institutions of the occupation have no role in skill development. Occupations licensed for conformance are regulated by heterogeneous, external institutions that are concerned with the enforcement of minimum task standards of performance to avoid harm and loss. Conformance licensing does not create an occupational monopoly and there is little evidence of high returns to licence-holders in conformance occupations.