Beyond traditional academic degrees: The labor market returns to occupational credentials in the United States

	Certification-holders	License-holders	Non-credential holders	All
IVs
Local peer group mean certification	0.028 (0.019)	NA	0.021 (0.017)	0.021 (0.017)
Local peer group mean license	NA	0.153 (0.058)	0.130 (0.059)	0.133 (0.059)
Selected Covariates
Local peer group mean wages	11.746 (3.929)	11.193 (3.755)	10.220 (3.808)	10.383 (3.823)
Local group mean wages	8.639 (1.181)	8.570 (1.155)	8.521 (1.152)	8.530 (1.153)
Local unemployment rate	0.050 (0.014)	0.050 (0.012)	0.051 (0.013)	0.050 (0.013)
Local labor force participation rate	0.832 (0.055)	0.832 (0.055)	0.827 (0.055)	0.828 (0.055)
Potential experience	25.162 (12.316)	26.130 (12.334)	26.484 (13.794)	26.410 (13.577)
Male	0.593 (0.491)	0.512 (0.500)	0.495 (0.500)	0.499 (0.500)
Married	0.571 (0.495)	0.589 (0.492)	0.502 (0.500)	0.515 (0.500)
Any dependents	0.380 (0.485)	0.377 (0.485)	0.311 (0.463)	0.321 (0.467)
N	5,863	40,689	250,618	297,170
Percent	2.00%	13.70%	84.30%	100%

[i] Note: Standard deviations in parentheses.

[ii] IV, instrumental variable.

Table 2

Sample Characteristics, Bachelor's Degree or More

	Certification-holders	License-holders	Non-credential holders	All
Instrumental variables
Local peer group mean certification	0.054 (0.027)	NA	0.048 (0.026)	0.049 (0.026)
Local peer group mean license	NA	0.335 (0.085)	0.308 (0.084)	0.317 (0.085)
Selected Covariates
Local peer group mean wages	23.887 (6.748)	22.261 (6.402)	23.190 (6.699)	22.926 (6.626)
Local group mean wages	21.480 (3.432)	20.721 (3.403)	21.355 (3.515)	21.163 (3.491)
Local unemployment rate	0.048 (0.011)	0.049 (0.011)	0.049 (0.011)	0.049 (0.011)
Local labor force participation rate	0.842 (0.051)	0.838 (0.053)	0.838 (0.051)	0.838 (0.052)
Potential experience	22.708 (11.145)	23.136 (11.548)	22.088 (12.294)	22.435 (12.038)
Male	0.522 (0.500)	0.397 (0.489)	0.484 (0.500)	0.458 (0.498)
Married	0.673 (0.469)	0.698 (0.459)	0.625 (0.484)	0.649 (0.477)
Any dependents	0.421 (0.494)	0.421 (0.494)	0.360 (0.480)	0.381 (0.486)
N	5,098	45,408	95,722	146,228
Percent	3.50%	31.10%	65.50%	100%

[i] Note: Standard deviations in parentheses.

Average labor market outcomes by credential status and level of education.
*Note*: Authors’ calculations from the CPS 2015 and 2016 (pooled). Certification refers to individuals with a certification but no license, while license refers to individuals with a license, whether or not they have a certification. Outcomes are not covariate-adjusted, but are weighted using CPS survey weights. CPS, current population survey.

Table 3

First-stage regressions predicting credential receipt

		License			Certifications
		No controls	Base controls	All controls	No controls	Base controls	All controls
Sub-baccalaureate	Coef.	0.798^***	0.659^***	0.425^***	0.489^***	0.239^***	0.198^***
	Std. Error	0.012	0.019	0.023	0.023	0.029	0.03
	F-stat.	5,504.5	1,982.7	192.6	802.2	353.4	45
Mean	0.14	0.14	0.14	0.023	0.023	0.023
N	291,307	291,307	291,307	256,481	256,481	256,481
Bachelor's degree or higher	Coef.	0.810^***	0.615^***	0.422^***	0.404^***	0.232^***	0.207^***
	Std. Error	0.021	0.024	0.026	0.03	0.036	0.036
	F-stat.	3,160.8	646.5	199.4	227.1	49.4	21.2
Mean	0.322	0.322	0.322	0.051	0.051	0.051
N	141,130	141,130	141,130	100,819	100,819	100,819

Note: Each cell coefficient comes from a separate regression. Regressions labelled “base controls” include state, month, and year fixed effects, and average local (CBSA) peer wages. “All controls” specifications additionally include birth cohort indicators (e.g., millennials, generation X, and baby boomers), race–ethnicity indicators, highest education indicators, marital status, having dependents at home, and controls for local labor conditions (employment rate, average wages, labor force participation in the CBSA). Std. Error = Standard Error from block-bootstrapping, F. stat = F-statistic, Mean is the outcome mean for the regression sample, and N = sample size of regression.

*** p < 0.01

** p < 0.05

* p < 0.1

CBSA, core-based statistical area.

MTEs of credential-holding for the probability of being employed, conditional on being in the labor force.
*Note*: Shaded region represents 95% confidence interval from block-bootstrapping. Results come from estimating MTE model of the marginal impact of credentialing across distaste for treatment on the outcome of probability of being employed. MTEs, marginal treatment effects.

Table 4

Effects of credential-holding on employment by level of education

	License		Certification
	Sub-baccalaureate	Bachelor's or higher	Sub-baccalaureate	Bachelor's or higher
OLS	0.020^*** (0.001)	0.012^*** (0.001)	0.011^*** (0.003)	0.004^* (0.002)
ATT	−0.012 (0.023)	0.044^** (0.018)	−0.450^*** (0.062)	0.134^*** (0.045)
ATE	0.149^*** (0.031)	0.039^** (0.015)	0.372^*** (0.122)	0.022 (0.060)
N	210,006	120,014	178,619	82,854
Mean	0.944	0.976	0.939	0.972

Note: Each column comes from a separate regression. Regressions also include state, year, and month fixed effects, birth cohort indicators (e.g., millennials, generation X, and baby boomers), race–ethnicity indicators, highest education indicators, indicators for gender, marital status, and having dependents, local unemployment rate, local average wages, local labor force participation rate, and local peer group wages. Block-bootstrapped standard errors in parentheses. Mean is the outcome mean for the regression sample.

*** p < 0.01

** p < 0.05

* p < 0.1

ATT, average treatment effect on the treated; ATE, average treatment effect.

MTEs of occupational credential-holding for log wages, conditional on being employed.
*Note*: Shaded region represents 95% confidence interval from block-bootstrapping. Results come from estimating MTE model of the marginal impact of credentialing across distaste for treatment on the outcome of probability of being employed. MTEs, marginal treatment effects.

Table 5

Effects of credential-holding on log wages by level of education

	License				Certification
	Sub-baccalaureate		At least bachelor's		Sub-baccalaureate		At least bachelor's
	No occupation or industry controls	Occupation and industry controls	No occupation or industry controls	Occupation and industry controls	No occupation or industry controls	Occupation and industry controls	No occupation or industry controls	Occupa tion and industry controls
OLS	0.095^*** (0.004)	0.072^*** (0.004)	0.079^*** (0.006)	0.063^*** (0.005)	0.138^*** (0.008)	0.090^*** (0.008)	0.099^*** (0.008)	0.063^*** (0.008)
ATT	0.422^*** (0.067)	0.329^*** (0.045)	−0.539^*** (0.070)	0.121^* (0.066)	1.889^*** (0.144)	1.435^*** (0.108)	−1.146^*** (0.191)	−0.287^** (0.129)
ATE	0.260^*** (0.065)	0.069 (0.063)	−0.192^*** (0.054)	0.080 (0.062)	0.232 (0.180)	0.095 (0.180)	0.152 (0.211)	0.049 (0.196)
N	177,819	177,819	104,586	104,586	152,228	152,228	72,261	72,261
Mean	2.759	2.759	3.325	3.325	2.737	2.737	3.297	3.297

Note: Each column comes from a separate regression. Additional covariates in all columns include state fixed effects, month fixed effects, year fixed effects, birth cohort indicators (e.g., millennials, generation X, and baby boomers), race–ethnicity indicators, highest education indicators (e.g., professional degree, bachelor's degree, some college), indicators for gender, marital status, and having dependents, local unemployment rate, local average wages, potential experience as a quadratic, IMR for employment, local labor force participation rate, and local peer group wages. Block-bootstrapped standard errors in parentheses. Mean is the outcome mean for the regression sample.

*** p < 0.01

** p < 0.05

* p < 0.1

ATT, average treatment effect on the treated; ATE, average treatment effect; IMR, inverse mills ratio.

Table 6

Decomposed and total effects of credentials on hourly wages by level of education

		License			Certification
		Extensive	Intensive	Total	Extensive	Intensive	Total
Sub-baccalaureate	OLS	0.174^*** (0.037)	0.044 (0.044)	0.218^*** (0.062)	0.103^*** (0.038)	0.074 (0.066)	0.177^** (0.072)
Sub-baccalaureate	ATE	0.397^*** (0.152)	0.013 (0.069)	0.410^** (0.165)	0.608 (0.561)	−0.460^** (0.218)	0.145 (0.607)
Mean			18.35			17.93
At least bachelors	OLS	0.267^*** (0.049)	0.003 (0.038)	0.269^*** (0.062)	0.101^* (0.058)	−0.016 (0.054)	0.085 (0.078)
At least bachelors	ATE	0.768^*** (0.277)	−0.003 (0.069)	0.765^*** (0.280)	2.944^** (1.146)	0.024 (0.178)	2.968^** (1.171)
Mean			33.34			32.57

Note: The extensive margin is the effect on overall wages driven by changes in the likelihood of being in labor force and probability of being employed, and the intensive margin is the effect driven by changes in wages conditional on working. Each coefficient comes from a separate regression. Additional covariates include state, month, and year fixed effects, birth cohort indicators (e.g., millennials, generation X, and baby boomers), race–ethnicity indicators, highest education indicators, indicators for gender, marital status, and having dependents, local unemployment rate, local average wages, potential experience as a quadratic, IMR for employment, local labor force participation rate, and local peer group wages. Block-bootstrapped standard errors in parentheses. Mean is the outcome mean for the regression sample.

*** p < 0.01

** p < 0.05

* p < 0.1

ATT, average treatment effect on the treated; ATE, average treatment effect; IMR, inverse mills ratio.

Table 7

Comparison of log wage returns to associate degree using our IV to returns to certification and licenses for the sub-baccalaureate population

	License	Certification	Associate degree
OLS	0.095^*** (0.004)	0.138^*** (0.008)	0.164^*** (0.004)
ATT	0.422^*** (0.067)	1.889^*** (0.144)	0.121^*** (0.023)
ATE	0.260^*** (0.065)	0.232 (0.180)	0.251^*** (0.036)
N	182,381	182,381	182,381
Mean	2.764	2.764	2.764

Note: Each column comes from a separate regression. Additional covariates include state fixed effects, month fixed effects, year fixed effects, birth cohort indicators (e.g., millennials, generation X, and baby boomers), race–ethnicity indicators, highest education indicators, indicators for gender, marital status, and having dependents, local unemployment rate, local average wages, potential experience as a quadratic, IMR for employment, local labor force participation rate, and local peer group wages. Block-bootstrapped standard errors in parentheses. Mean is the outcome mean for the regression sample.

*** p < 0.01

** p < 0.05

* p < 0.1

ATT, average treatment effect on the treated; ATE, average treatment effect; IV, instrumental variable; IMR, inverse mills ratio.

Table 8

Effects of credential-holding on employment by gender and level of education

	License		Certification
	Sub-baccalaureate	Bachelor's or higher	Sub-baccalaureate	Bachelor's or higher
Men
OLS	0.019^*** (0.002)	0.011^*** (0.002)	0.011^*** (0.004)	0.003 (0.003)
ATT	−0.126^*** (0.032)	0.048 (0.031)	−0.426^*** (0.083)	0.061 (0.066)
ATE	0.025 (0.027)	0.018 (0.019)	0.078 (0.071)	0.234^*** (0.082)
N	115,193	58,417	98,991	43,804
Mean	0.943	0.977	0.938	0.973
Women
OLS	0.022^*** (0.002)	0.013^*** (0.001)	0.011^** (0.005)	0.005 (0.003)
ATT	0.267^*** (0.042)	0.031 (0.025)	−0.295^*** (0.098)	0.246^*** (0.080)
ATE	0.149^*** (0.031)	0.039^** (0.015)	0.372^*** (0.122)	0.022 (0.060)
N	94,813	61,597	79,628	39,050
Mean	0.945	0.976	0.940	0.970

Note: Each column by gender comes from a separate regression. Additional covariates include state fixed effects, month fixed effects, year fixed effects, birth cohort indicators (e.g., millennials, generation X, and baby boomers), race–ethnicity indicators, highest education indicators, indicators for marital status and having dependents, local unemployment rate, local average wages, local labor force participation rate, and local peer group wages. Block-bootstrapped standard errors in parentheses. Mean is the outcome mean for the regression sample.

*** p < 0.01

** p < 0.05

* p < 0.1

ATT, average treatment effect on the treated; ATE, average treatment effect.

Table 9

Effects of credential-holding on log wages by gender and level of education

	License				Certification
	Sub-baccalaureate		At least bachelor's		Sub-baccalaureate		At least bachelor's
	No occupation or industry controls	Occupation and industry controls	No occupation or industry controls	Occupation and industry controls	No occupation or industry controls	Occupation and industry controls	No occupation or industry controls	Occupation and industry controls
Men
OLS	0.087^*** (0.005)	0.072^*** (0.005)	0.018^** (0.009)	0.027^*** (0.008)	0.145^*** (0.009)	0.087^*** (0.008)	0.081^*** (0.012)	0.052^*** (0.012)
ATT	0.353^*** (0.099)	0.073 (0.066)	−0.558^*** (0.113)	0.132 (0.091)	1.662^*** (0.183)	1.216^*** (0.144)	−1.105^*** (0.254)	−0.428^** (0.179)
ATE	0.131 (0.103)	0.166^* (0.097)	0.193 (0.122)	0.314^*** (0.114)	−0.615^** (0.258)	−0.419 (0.267)	0.542 (0.357)	0.886^*** (0.329)
LATE	0.271^*** (0.084)	0.089 (0.062)	−0.197^** (0.097)	0.174^** (0.087)	1.580^*** (0.191)	1.222^*** (0.153)	−0.916^*** (0.252)	−0.259 (0.178)
2SLS	0.049 (0.092)	0.103 (0.092)	−0.348^*** (0.110)	−0.193 (0.144)	0.579^*** (0.220)	0.479^** (0.205)	−0.525^* (0.277)	−0.997^*** (0.262)
ATUT	0.088 (0.119)	0.184^* (0.112)	0.489^*** (0.162)	0.386^** (0.152)	−0.695^*** (0.267)	−0.477^* (0.276)	0.644^* (0.377)	0.969^*** (0.349)
N	95,138	95,138	49,653	49,653	82,510	82,510	37,841	37,841
Mean	2.848	2.848	3.422	3.422	2.825	2.825	3.409	3.409
Women
OLS	0.096^*** (0.006)	0.064^*** (0.006)	0.128^*** (0.006)	0.092^*** (0.006)	0.119^*** (0.017)	0.087^*** (0.015)	0.121^*** (0.013)	0.079^*** (0.012)
ATT	0.025 (0.097)	0.440^*** (0.059)	−0.330^*** (0.096)	0.288^*** (0.087)	0.989^*** (0.240)	1.284^*** (0.164)	−1.174^*** (0.286)	0.128 (0.191)
ATE	−0.086 (0.100)	−0.739^*** (0.103)	−0.179^*** (0.063)	0.047 (0.059)	−0.030 (0.340)	−1.660^*** (0.353)	−0.210 (0.279)	−0.560^** (0.268)
LATE	−0.018 (0.077)	0.016 (0.055)	−0.212^*** (0.065)	0.099^* (0.058)	1.193^*** (0.287)	1.358^*** (0.207)	−1.104^*** (0.263)	−0.018 (0.177)
2SLS	−0.095 (0.086)	−0.124 (0.107)	−0.342^*** (0.074)	−0.542^*** (0.107)	−0.898^*** (0.301)	−0.836^*** (0.290)	0.025 (0.312)	−0.510^* (0.287)
ATUT	−0.110 (0.120)	−0.998^*** (0.129)	−0.075 (0.086)	−0.119 (0.086)	−0.057 (0.347)	−1.739^*** (0.362)	−0.153 (0.293)	−0.602^** (0.283)
N	82,681	82,681	54,933	54,933	69,718	69,718	34,421	34,421
Mean	2.657	2.657	3.237	3.237	2.633	2.633	3.174	3.174

Notes: Each column by gender group comes from a separate regression. Additional covariates include state fixed effects, month fixed effects, year fixed effects, birth cohort indicators (e.g., millennials, generation-X, and baby boomers), race-ethnicity indicators, highest education indicators, indicators for gender and having dependents, local unemployment rate, local average wages, potential experience as a quadratic, inverse mills ratio for employment, local labor force participation rate, and local peer group wages.

Block-bootstrapped standard errors in parentheses.

*** p < 0.01

** p < 0.05

* p < 0.1.

Table A1

Effects of credential-holding on employment by level of education

	License		Certification
	Sub-baccalaureate	Bachelor's or higher	Sub-baccalaureate	Bachelor's or higher
OLS	0.020^*** (0.001)	0.012^*** (0.001)	0.011^*** (0.003)	0.004^* (0.002)
ATT	−0.012 (0.023)	0.044^** (0.018)	−0.450^*** (0.062)	0.134^*** (0.045)
ATE	0.149^*** (0.031)	0.039^** (0.015)	0.372^*** (0.122)	0.022 (0.060)
LATE	0.017 (0.018)	0.036^*** (0.012)	−0.469^*** (0.067)	0.152^*** (0.041)
2SLS	0.053^** (0.021)	0.030^** (0.014)	−0.359^*** (0.077)	0.194^*** (0.045)
ATUT	0.058^*** (0.019)	0.028^** (0.013)	0.082 (0.055)	0.121^** (0.053)
N	210,006	120,014	178,619	82,854
Mean	0.944	0.976	0.939	0.972

Notes: Each column comes from a separate regression. Regressions also include state, year, and month fixed effects, birth cohort indicators (e.g., millennials, generation-X, and baby boomers), race-ethnicity indicators, highest education indicators, indicators for gender, marital status, and having dependents, local unemployment rate, local average wages, local labor force participation rate, and local peer group wages.

Block-bootstrapped standard errors in parentheses.

Mean = sample outcome mean.

*** p < 0.1.

Table A2

Effects of credential-holding on log wages by level of education

	License				Certification
	Sub-baccalaureate		At least bachelor's		Sub-baccalaureate		At least bachelor's
	No occupation or industry controls	Occupation and industry controls	No occupation or industry controls	Occupation and industry controls	No occupation or industry controls	Occupation and industry controls	No occupation or industry controls	Occupation and industry controls
OLS	0.095^*** (0.004)	0.072^*** (0.004)	0.079^*** (0.006)	0.063^*** (0.005)	0.138^*** (0.008)	0.090^*** (0.008)	0.099^*** (0.008)	0.063^*** (0.008)
ATT	0.422^*** (0.067)	0.329^*** (0.045)	−0.539^*** (0.070)	0.121^* (0.066)	1.889^*** (0.144)	1.435^*** (0.108)	−1.146^*** (0.191)	−0.287^** (0.129)
ATE	0.260^*** (0.065)	0.069 (0.063)	−0.192^*** (0.054)	0.080 (0.062)	0.232 (0.180)	0.095 (0.180)	0.152 (0.211)	0.049 (0.196)
LATE	0.372^*** (0.060)	0.241^*** (0.046)	−0.334^*** (0.052)	0.067 (0.055)	2.011^*** (0.159)	1.583^*** (0.125)	−1.003^*** (0.178)	−0.257^** (0.122)
2SLS	0.383^*** (0.062)	0.453^*** (0.068)	−0.489^*** (0.059)	−0.644^*** (0.086)	1.785^*** (0.178)	1.511^*** (0.172)	−0.147 (0.204)	−0.424^** (0.187)
ATUT	0.227^*** (0.073)	0.015 (0.072)	−0.006 (0.075)	0.057 (0.086)	0.181 (0.184)	0.053 (0.185)	0.231 (0.222)	0.069 (0.206)
N	177,819	177,819	104,586	104,586	152,228	152,228	72,261	72,261
Mean	2.759	2.759	3.325	3.325	2.737	2.737	3.297	3.29

Notes: Each column comes from a separate regression. Additional covariates in all columns include state fixed effects, month fixed effects, year fixed effects, birth cohort indicators (e.g., millennials, generation-X, and baby boomers), race-ethnicity indicators, highest education indicators (e.g., professional degree, bachelor's degree, some college), indicators for gender, marital status, and having dependents, local unemployment rate, local average wages, potential experience as a quadratic, inverse mills ratio for employment, local labor force participation rate, and local peer group wages.

Block-bootstrapped standard errors in parentheses.

*** p < 0.01

** p < 0.05

* p < 0.1.

Table A3

Comparison of log wage returns to associate degree using our instrumental variable to returns to certification and licenses for the sub-baccalaureate population

	License	Certification	Associate degree
OLS	0.095^*** (0.004)	0.138^*** (0.008)	0.164^*** (0.004)
ATT	0.422^*** (0.067)	1.889^*** (0.144)	0.121^*** (0.023)
ATE	0.260^*** (0.065)	0.232 (0.180)	0.251^*** (0.036)
LATE	0.372^*** (0.060)	2.011^*** (0.159)	0.424^*** (0.030)
2SLS	0.383^*** (0.062)	1.785^*** (0.178)	1.250^*** (0.077)
ATUT	0.227^*** (0.073)	0.181 (0.184)	0.281^*** (0.043)
N	182,381	182,381	182,381
Mean	2.764	2.764	2.764

Notes: Each column comes from a separate regression Additional covariates include state fixed effects, month fixed effects, year fixed effects, birth cohort indicators (e.g., millennials, generation-X, and baby boomers), race-ethnicity indicators, highest education indicators, indicators for gender, marital status, and having dependents, local unemployment rate, local average wages, potential experience as a quadratic, inverse mills ratio for employment, local labor force participation rate, and local peer group wages. Block-bootstrapped standard errors in parentheses.

*** p < 0.01

** p < 0.05

* p < 0.1.

Table A4

Effects of credential-holding on employment by gender and level of education

	License		Certification
	Sub-bac	BA+	Sub-bac	BA+
Men
OLS	0.019^*** (0.002)	0.011^*** (0.002)	0.011^*** (0.004)	0.003 (0.003)
ATT	−0.126^*** (0.032)	0.048 (0.031)	−0.426^*** (0.083)	0.061 (0.066)
ATE	0.025 (0.027)	0.018 (0.019)	0.078 (0.071)	0.234^*** (0.082)
LATE	−0.070^*** (0.025)	0.029 (0.022)	−0.429^*** (0.085)	0.110^* (0.064)
2SLS	−0.000 (0.030)	0.020 (0.024)	−0.301^*** (0.101)	−0.049 (0.065)
ATUT	0.056^* (0.032)	0.006 (0.022)	0.095 (0.073)	0.244^*** (0.087)
N	115,193	58,417	98,991	43,804
Mean	0.943	0.977	0.938	0.973
Women
OLS	0.022^*** (0.002)	0.013^*** (0.001)	0.011^** (0.005)	0.005 (0.003)
ATT	0.267^*** (0.042)	0.031 (0.025)	−0.295^*** (0.098)	0.246^*** (0.080)
ATE	0.149^*** (0.031)	0.039^** (0.015)	0.372^*** (0.122)	0.022 (0.060)
LATE	0.242^*** (0.033)	0.038^** (0.016)	−0.304^*** (0.116)	0.252^*** (0.071)
2SLS	0.235^*** (0.035)	0.033^* (0.018)	−0.434^*** (0.128)	0.501^*** (0.081)
ATUT	0.123^*** (0.037)	0.044^** (0.019)	0.390^*** (0.125)	0.009 (0.064)
N	94,813	61,597	79,628	39,050
Mean	0.945	0.976	0.940	0.970

Notes: Each column by gender comes from a separate regression. Additional covariates include state fixed effects, month fixed effects, year fixed effects, birth cohort indicators (e.g., millennials, generation-X, and baby boomers), race-ethnicity indicators, highest education indicators, indicators for marital status and having dependents, local unemployment rate, local average wages, local labor force participation rate, and local peer group wages.

Block-bootstrapped standard errors in parentheses.

*** p < 0.01

** p < 0.05

* p < 0.1.

Table A5

Effects of credential-holding on log wages by gender and level of education

	License				Certification
	Sub-baccalaureate		At least bachelor's		Sub-baccalaureate		At least bachelor's
	No occupation or industry controls	Occupation and industry controls	No occupation or industry controls	Occupation and industry controls	No occupation or industry controls	Occupation and industry controls	No occupation or industry controls	Occupation and industry controls
Men
OLS	0.087^*** (0.005)	0.072^*** (0.005)	0.018^** (0.009)	0.027^*** (0.008)	0.145^*** (0.009)	0.087^*** (0.008)	0.081^*** (0.012)	0.052^*** (0.012)
ATT	0.353^*** (0.099)	0.073 (0.066)	−0.558^*** (0.113)	0.132 (0.091)	1.662^*** (0.183)	1.216^*** (0.144)	−1.105^*** (0.254)	−0.428^** (0.179)
ATE	0.131 (0.103)	0.166^* (0.097)	0.193 (0.122)	0.314^*** (0.114)	−0.615^** (0.258)	−0.419 (0.267)	0.542 (0.357)	0.886^*** (0.329)
LATE	0.271^*** (0.084)	0.089 (0.062)	−0.197^** (0.097)	0.174^** (0.087)	1.580^*** (0.191)	1.222^*** (0.153)	−0.916^*** (0.252)	−0.259 (0.178)
2SLS	0.049 (0.092)	0.103 (0.092)	−0.348^*** (0.110)	−0.193 (0.144)	0.579^*** (0.220)	0.479^** (0.205)	−0.525^* (0.277)	−0.997^*** (0.262)
ATUT	0.088 (0.119)	0.184^* (0.112)	0.489^*** (0.162)	0.386^** (0.152)	−0.695^*** (0.267)	−0.477^* (0.276)	0.644^* (0.377)	0.969^*** (0.349)
N	95,138	95,138	49,653	49,653	82,510	82,510	37,841	37,841
Mean	2.848	2.848	3.422	3.422	2.825	2.825	3.409	3.409
Women
OLS	0.096^*** (0.006)	0.064^*** (0.006)	0.128^*** (0.006)	0.092^*** (0.006)	0.119^*** (0.017)	0.087^*** (0.015)	0.121^*** (0.013)	0.079^*** (0.012)
ATT	0.025 (0.097)	0.440^*** (0.059)	−0.330^*** (0.096)	0.288^*** (0.087)	0.989^*** (0.240)	1.284^*** (0.164)	−1.174^*** (0.286)	0.128 (0.191)
ATE	−0.086 (0.100)	−0.739^*** (0.103)	−0.179^*** (0.063)	0.047 (0.059)	−0.030 (0.340)	−1.660^*** (0.353)	−0.210 (0.279)	−0.560^** (0.268)
LATE	−0.018 (0.077)	0.016 (0.055)	−0.212^*** (0.065)	0.099^* (0.058)	1.193^*** (0.287)	1.358^*** (0.207)	−1.104^*** (0.263)	−0.018 (0.177)
2SLS	−0.095 (0.086)	−0.124 (0.107)	−0.342^*** (0.074)	−0.542^*** (0.107)	−0.898^*** (0.301)	−0.836^*** (0.290)	0.025 (0.312)	−0.510^* (0.287)
ATUT	−0.110 (0.120)	−0.998^*** (0.129)	−0.075 (0.086)	−0.119 (0.086)	−0.057 (0.347)	−1.739^*** (0.362)	−0.153 (0.293)	−0.602^** (0.283)
N	82,681	82,681	54,933	54,933	69,718	69,718	34,421	34,421
Mean	2.657	2.657	3.237	3.237	2.633	2.633	3.174	3.174

Note: Each column by gender group comes from a separate regression. Additional covariates include state fixed effects, month fixed effects, year fixed effects, birth cohort indicators (e.g., millennials, generation-X, and baby boomers), race-ethnicity indicators, highest education indicators, indicators for gender and having dependents, local unemployment rate, local average wages, potential experience as a quadratic, inverse mills ratio for employment, local labor force participation rate, and local peer group wages.

Block-bootstrapped standard errors in parentheses.

*** p < 0.01

** p < 0.05

* p < 0.1.

Marginal treatment effects of occupational credential-holding for log wages, conditional on being employed. **(A)** Licenses and **(B)** Certifications.

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DOI: https://doi.org/10.2478/izajole-2022-0004 | Journal eISSN: 2193-8997

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Language: English

Accepted on: Apr 28, 2022

Published on: Aug 8, 2022

Published by: Sciendo

In partnership with: Paradigm Publishing Services

Keywords:

JEL:

J44,

J24,

J40,

J01

Related subjects:

Business and economics,

Mathematics and statistics for economists,

Econometrics

© 2022 Matthew D. Baird, Robert Bozick, Melanie A. Zaber, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 11 (2022): Issue 1 (January 2022)

Beyond traditional academic degrees: The labor market returns to occupational credentials in the United States

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