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Returns to Professional Licenses and Education-Occupation (Mis)matching

Author

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  • Bayudan-Dacuycuy, Connie
  • Vargas, Anna Rita P.
  • Luzon, Paola Ellaine D.

Abstract

Cognizant of the persistent concerns about the misalignment of skills and education with industry and occupation needs, this paper investigates the returns to professional licenses alongside education-occupation matching. It also analyzes the effects of individual and higher education attributes on basic pay. Results indicate that individual and school characteristics are important, but labor market experiences and structural mismatches play a more significant role in determining pay premiums. There are observed payoffs in holding a license when education and occupation credentials align. Beyond reforms in the education sector, policies are needed to ensure that education and learning lead to desirable labor market outcomes. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph.

Suggested Citation

  • Bayudan-Dacuycuy, Connie & Vargas, Anna Rita P. & Luzon, Paola Ellaine D., 2025. "Returns to Professional Licenses and Education-Occupation (Mis)matching," Discussion Papers DP 2025-32, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2025-32
    DOI: https://doi.org/10.62986/dp2025.32
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