License on the Way

Abstract

Occupational licenses are not easily portable across states or national borders, creating labor market frictions for migrant workers. This study examines whether expedited licensing programs reduce these frictions for military spouses, a group of tied migrants who frequently relocate across states. I find that following the programs, the employment rate significantly increased among military spouses who recently moved across states. Consequently, military spouses in licensed occupations earned more from work and received less unemployment compensation in the year of migration. These findings highlight expedited licensure as an effective policy tool for reducing occupational licensing barriers associated with interstate migration.