The first drivers license was issued to Karl Benz. In order for him to operate his invention on public roads after people complained about the noise and smell.

The first mandatory use was in the Uk around 1903. In which they passed " The motor vehicle act of 1903". You needed to be 17 to apply and it certified you to operate a motor vehicle under 20 mph.

Source: http://ec.europa.eu/transport/road_safety/topics/behaviour/driving_licence/index_en.htm