Abstract
This study uses recently released Current Population Survey microdata to estimate the earnings premium associated with professional certification and licenses. The author finds that full-time manufacturing workers with a certification or license earn close to $200 more in median weekly earnings compared to those without. However, this does not account for differences in pay that are associated with worker endowments, such as education and gender. A Blinder–Oaxaca decomposition is used to distinguish the portion of the earnings gap that is attributable to the credential from the portion associated with endowments. Endowments explain 62% of the total earnings gap, meaning that the actual returns to a certification or license are closer to $70 per week. The author also finds that workers with no high school or college education receive a relatively larger increase in weekly earnings, compared to those with more advanced degrees.
Get full access to this article
View all access options for this article.
References
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
