Labor Market Outcomes of Education Graduates in the Philippines: The Role of Licensure Credentials and Job Matching

International evidence has shown that occupational licensing influences employment opportunities and wage determination, however, the effects of licensure on employment and wages in the Philippine context remain underexplored. A recent study by Bayudan-Dacuycuy et al. (2025) suggests that professional licenses yield positive payoffs when education and occupation credentials are aligned. Building on this, the present study aims to investigate the link between obtaining a professional license and improvements in labor market outcomes, specifically among education science and related program graduates in the Philippines. Using data from the July 2024 round of the merged Labor Force Survey-Annual Poverty Indicator Survey (LFS-APIS), the study employs a conditional mixed process framework and probit regression to examine whether professional licensing translates into advantages in employment, job quality, and remuneration. The findings suggest that although having a license is expected to serve as an important signal of professional skills and competence, its labor market benefits are not guaranteed and may depend largely on whether graduates are employed in the public sector. For education graduates, being employed in a job aligned with their academic background and training is a significant factor in improving labor market outcomes, with alignment resulting in a lower likelihood of underemployment (for licensed graduates) and a potential wage premium. Based on these findings, there is a need to strengthen and establish well-defined career pathways for education graduates that improve job matching for both licensure and non-licensure programs. This aims to ensure that employment opportunities are better aligned with skills and training. It is also important to re-examine the current incentive system for educators, in both private and public sector, so that it can better support and improve learning outcomes. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph.