Credentials: Defining Quality, Evaluating Outcomes

New resources from researchers and national organizations are adding to our knowledge about quality credentials, particularly non-degree credentials.

Defining quality for non-degree credentials: The National Skills Coalition (NSC) recently defined a quality non-degree credential and, in consultation with 12 leading states, developed a set of criteria that states can adopt for their own quality assurance systems. ACTE was among the national education and workforce organizations who were also consulted during the development process.

According to NSC, a quality non-degree credential—a postsecondary certificate, industry certification, occupational license or apprenticeship certificate—is “one that provides individuals with the means to equitably achieve their informed employment and educational goals. There must be valid, reliable and transparent evidence that the credential satisfies the criteria that quality:”

1. Substantial job opportunities (required)
2. Transparent evidence of the competencies mastered by credential holders (required)
3. Evidence of the employment and earnings outcomes of individuals after obtaining the credential (required)
4. Stackability to additional education or training (strongly preferred)

State policies can support equitable access to quality credentials through financial aid; supportive services (such as transportation, child care and housing assistance); career counseling, industry partnerships and work-based learning; stackable credentials; integrated education and training (IET) programs for low-skilled adults; and comprehensive data systems.

Counting credentials: A new report from Credential Engine estimates that the United States has at least 738,000 unique credentials across different providers. This number includes degrees as well as about 475,000 non-degree credentials such as postsecondary certificates, apprenticeship certificates, licenses, industry certifications, badges and more.

Knowing how many credentials are available is a necessary first step in learning more about credential value. To further this work, Credential Engine has been building the Credential Registry, a real-time source for credential information based on a common language and common definitions.

Credential outcomes:

• A report from Strada Education Network and Lumina Foundation, based on a nationally representative survey of U.S. adults, finds that individuals with a certificate or certification but no college degree have higher full-time employment rates than their peers without a credential (85 percent to 78 percent) and higher median annual incomes ($45,000 to $30,000). They also perceive themselves as more marketable and report greater happiness. However, wage gains vary greatly based on occupation, and wage premiums are much larger for men than women.
• The findings of seven independent analyses link postsecondary certificates and other college-issued credentials to higher rates of employment. Earning gains are larger and more consistent for credentials that take at least six months to complete. While labor market benefits can be found in both the health care and manufacturing sectors, absolute earnings are typically higher in manufacturing.
• An analysis from ExcelinEd and Burning Glass examines data from three states to assess the relationship between CTE high school students’ attainment of credentials and their education and employment outcomes. Across all three states—Florida, Indiana and Kentucky—earning a credential was associated with an increase in on-time graduation. Florida CTE students who earned credentials were more likely to enroll in and graduate from community college. Similarly, evidence from Kentucky linked high school credential attainment with a greater likelihood of earning an associate degree. Finally, data from Florida and Indiana demonstrated that high school credential attainment was associated with higher wages.
• Recent research from Giani, Attewell and Walling (2019) evaluates the employment and earnings outcomes of one cohort of Texas high school graduates. The researchers found that individuals with some college but no credential were more likely to be employed 15 years later and earned more than their peers who did not attend postsecondary education.