Introduction
Income inequality has become one of the defining challenges of the early 21st century. According to some estimates, average U.S. incomes have stagnated for the bottom 50% of working-age adults over the past few decades. Americans who lack a credential beyond high school have seen the biggest decline in job opportunities.
But college degrees remain out of reach for many. Millions of Americans need other ways to prepare for so-called “middle-skills” technical and skilled-services jobs. Recent years have seen a surge in the availability of non-degree credentials intended to address this need.
Overview
Among the most common non-degree credentials are professional certifications. Typically granted by businesses or trade associations, certifications confirm proficiency in a given field. Census data show that, in many fields, workers who hold a certification earn considerably higher incomes than their non-certified peers.
This analysis finds that those with professional certifications are more likely to be in “good jobs” overall. In particular, certifications appear to help workers see the job, not merely as a way to earn money, but as a career-oriented opportunity for advancement and growth.
Certifications are most common in service industries such as health care and education, where they serve as minimum requirements for many technical and support roles. However, in sectors where certifications are less common—manufacturing and retail sales, for example—they often distinguish between higher- and lower-quality jobs.
These findings suggest that, by expanding the use of certifications in such fields, more workers can work their way up from entry-level jobs to positions that offer a clear path to advancement.