The earnings of individuals who participate in education and training after high school can provide information about the value of those credentials. This Perspective provides a review of the evidence on earnings gains associated with various types of postsecondary credentials, including college credit–bearing degrees and certificates, noncredit training and certificates, apprenticeships, and occupational credentials (i.e., licenses and certifications). The evidence suggests that most types of postsecondary credentials can lead to improved earnings, though longer-term credentials tend to be associated with higher returns, and credit-bearing credentials may offer higher returns than noncredit credentials. When individuals go on to earn additional credentials (or stack credentials), they can see additional earnings gains beyond those that they receive for the initial credential. There is wide variation in the returns to credentials across different fields. Returns to postsecondary credentials vary for individuals by demographic characteristics; women see larger gains across credentials, while racial and ethnic differences vary by credential types.
Related Products
Content
RAND Lowy Family Middle-Class Pathways Center Feb 25, 2021
Research conducted by RAND Education and Labor
Funding for this research was provided by gifts from RAND supporters and income from operations. The research was conducted within the RAND Lowy Family Middle-Class Pathways Center with RAND Education and Labor.
This publication is part of the RAND Corporation Perspective series. RAND Perspectives present expert insights on timely policy issues. All RAND Perspectives undergo peer review to ensure high standards for quality and objectivity.
Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.