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The Labor Market Returns to Very Short Postsecondary Certificates

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  • Darolia, Rajeev

    (University of Kentucky)

  • Guo, Chuanyi

    (University of Kentucky)

  • Kim, Youngran

    (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.

Suggested Citation

  • Darolia, Rajeev & Guo, Chuanyi & Kim, Youngran, 2023. "The Labor Market Returns to Very Short Postsecondary Certificates," IZA Discussion Papers 16081, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp16081
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    References listed on IDEAS

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    3. Sophie McGuinness, 2025. "Local Labor Market Alignment of Short-Term Certificate Programs," Research in Higher Education, Springer;Association for Institutional Research, vol. 66(6), pages 1-27, September.

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    Keywords

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    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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