More Money for Less Time? Examining the Relative and Heterogeneous Financial Returns to Non-Degree Credentials and Degree Programs

Abstract

There is a large and growing number of non-degree credential offerings between a high school diploma and a bachelor’s degree, as well as degree programs beyond a bachelor’s degree. Nevertheless, research on the financial returns to non-degree credentials and degree-granting programs is often narrow and siloed. To fill this gap, we leverage a national sample of individuals across nine MSAs and four industries to examine the relative financial returns to a variety of non-degree credentials and degree programs. Leveraging a semi-parametric difference-in-difference model advanced by Callaway and Sant’Anna (CS-DID), we explore the relationship between completing a credential or degree and earnings premiums. We find that earnings premiums were not always commensurate with the time it takes to complete various credential and degree programs and that the earnings trajectories varied substantially across these credential and degree programs. Subsample analyses reveal significant differences across gender, race/ethnicity, and industry.

Project: Upskilling Through Non-Degree Credentials