The Labor Market Returns to Very Short Postsecondary Certificates

53 Pages Posted: 19 Apr 2023

See all articles by Rajeev Darolia

Rajeev Darolia

Martin School of Public Policy

Chuanyi Guo

University of Kentucky - James W. Martin School of Public Policy and Administration

Youngran Kim

Michigan State University

Abstract

Major policy initiatives and high award rates have led to questions about the value of short-term postsecondary credentials. We examine the labor market returns to very short certificates, including those that require only a few credits to complete, using data from a state that has among the highest awarding rates of such credentials. We do not find strong evidence that rapid certificates (those that require 6 credits or fewer) have lower immediate labor market returns than longer but still short-term certificates (7-36 credits). For health students, rapid certificates yield the greatest immediate earnings and employment gains, though these benefits appear to fade out. We also find that, compared to pre-enrollment, health and skilled trades students who earned a rapid certificate are most likely to switch into an establishment whose industry aligns with the field of study.

Keywords: returns to education, postsecondary certificates

JEL Classification: I26, J24, J38

Suggested Citation

Darolia, Rajeev and Guo, Chuanyi and Kim, Youngran, The Labor Market Returns to Very Short Postsecondary Certificates. IZA Discussion Paper No. 16081, Available at SSRN: https://ssrn.com/abstract=4422833 or http://dx.doi.org/10.2139/ssrn.4422833

Rajeev Darolia (Contact Author)

Martin School of Public Policy ( email )

401 Patterson Office Tower
Lexington, KY 40506
United States
859-323-7522 (Phone)

Chuanyi Guo

University of Kentucky - James W. Martin School of Public Policy and Administration ( email )

Lexington, KY 40506
United States

Youngran Kim

Michigan State University

Agriculture Hall
East Lansing, MI 48824-1122
United States

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