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Estimating the Returns to Professional Certifications and Licenses in the U.S. Manufacturing Sector

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  • Henry Renski

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.

Suggested Citation

  • Henry Renski, 2018. "Estimating the Returns to Professional Certifications and Licenses in the U.S. Manufacturing Sector," Economic Development Quarterly, , vol. 32(4), pages 341-356, November.
    • Handle: RePEc:sae:ecdequ:v:32:y:2018:i:4:p:341-356
    DOI: 10.1177/0891242418792090
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