Certification raises earnings

More than 50 million U.S. adults, or one in four, have earned a professional certification, license or educational certificate, according to a new Census report on alternative credentials. For workers with less than a bachelor’s degrees, certificates and licenses provide an “earnings premium.”
Alternative Education Credentials
“Getting an academic degree is not the only way for people to develop skills that pay off in the labor market,” said Stephanie Ewert,co-author of the report.

Certifications and licenses are valuable in many fields, including business/finance management, nursing, education, cosmetology and culinary arts.

Around 30 percent of employed adults held an alternative credential, compared to 16 percent of the unemployed and 13 percent of those not in the labor force.

Seventy-one percent of workers in technical fields hold an alternative credential, the report found.

Certifications that “signal specific competencies” make it easier for jobseekers and employers to find each other,  writes Mary Alice McCarthy on Ed Central. “Signals at the lower end of the job market . . . are relatively scarce.”

For people who don’t have the time, disposition, or financial means to complete a college degree, the positive economic return to alternative credentials is welcome news.  For education and training providers worried about improving the labor market outcomes of their students, the report points to the value of embedding stackable and competency-based credentials into their programs.  

And for the research and advocacy community, the results raise a host of new and important questions about how credentials function at different tiers of the labor market, how we ensure their quality, protect credential-seekers from worthless credentials, and use non-degree credentials to improve job quality. 

The U.S. workforce would look a lot better in international comparisons if certificate holders without college degrees were counted as trained workers, McCarthy adds.


POSTED BY Joanne Jacobs ON January 21, 2014

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[…] More than 50 million U.S. adults, or one in four, have earned a vocational certificate or license, according to a new Census report on alternative credentials. For workers with less than a bachelor’s degrees, certificates and licenses provide an “earnings premium.” […]

[…] their skills by writing. In many other fields, it’s harder to prove competence. But certifications, digital badges and such like could help young adults show what they […]

[…] their skills by writing. In many other fields, it’s harder to prove competence. But certifications, digital badges and such like could help young adults show what they […]

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