Occupational licensing is state-sanctioned permission to work in a particular occupation. These regulations are typically passed with the intent to protect consumers’ health, safety, and well-being. Across the United States and Europe, licensing has increased during the past 50 years from applying to approximately 5 percent of workers to over 20 percent. As licensing grows, it becomes increasingly important to understand how these regulations affect workers’ employment and earnings, particularly if they contribute to new adverse labor market frictions.