The Impact of Certifications on Earnings across States and Occupations
This article is part of a series of reports on new estimates from the Labor Market Information Institute State Certification and Licenses Data Tables. Find previous blog posts in this series here.
For workers adapting to changing economic conditions, non-degree credentials can help with retraining and gaining new skill sets. But do these non-degree credentials also increase earnings? Very little information has been available regarding the relevant earnings outcomes (we know much more about earnings from degrees). Utilizing micro-data from the Current Population Survey (CPS), the LMI Institute aims to improve our understanding of the value of licenses and certifications for earnings potential.
This month, we look at the earnings of workers who have a certification but no license. Nationally, those with only a certification earn $363 or 44% more than those with neither a certification nor license.
Below we list the states with the greatest percent difference in earnings associated with a certification. The top two states are Maryland and Virginia, each with a difference of more than $700 in weekly median earnings for those with a certification only compared to those with no certification or license.
Top 10 States Weekly Median Earnings: Difference Between Those with a Certification Only and Those with Neither a Certification nor a License (Ranked by Percent Difference) |
|||||||||
---|---|---|---|---|---|---|---|---|---|
Rank | State | Percent Difference | Earnings Difference | ||||||
1 | Virginia | 79% | $714 | ||||||
2 | Maryland | 76% | $731 | ||||||
3 | Nebraska | 76% | $572 | ||||||
4 | West Virginia | 72% | $520 | ||||||
5 | Georgia | 71% | $548 | ||||||
6 | Arizona | 70% | $554 | ||||||
7 | Louisiana | 65% | $486 | ||||||
8 | New Mexico | 65% | $456 | ||||||
9 | Kentucky | 64% | $460 | ||||||
10 | Nevada | 63% | $468 |
Results for all states are listed on our Tableau dashboard. The lowest earnings difference, in Indiana, was $224 — workers with a certification only earn only 29% more than those with neither certifications nor licenses. The lowest percent difference in earnings, in Ohio, was 28% — wages for workers with a certification only earned $226 more than their counterparts without a certification.
While the CPS does not include data about what specific certifications are driving these results for states, we can look at whether certifications seem to increase earnings for people in some occupations more than in others. (Results below are national. Details by occupation and state are available to members through LMI Institute.)
Those with only a certification in sales and related occupations earn 57% more than those without a certification or license, $433 more per week on average. Among those who work in legal occupations, people with a certification earn 50% more than their counterparts without a certification, $552 more per week. In contrast, people working in healthcare support occupations earned only $56 more in median weekly earnings with a certification. Results for all occupations are listed on our Tableau dashboard.
Top 10 Occupations Difference Between Those with a Certification Only and Those with Neither a Certification nor a License (Ranked by Percent Difference) |
|||||||||
---|---|---|---|---|---|---|---|---|---|
Rank | Occupation | Percent Difference | Earnings Difference | ||||||
1 | Sales and related occupations | 57% | $433 | ||||||
2 | Legal occupations | 50% | $552 | ||||||
3 | Business and financial operations occupations | 36% | $427 | ||||||
4 | Construction and extraction occupations | 35% | $276 | ||||||
5 | Building and grounds cleaning and maintenance occupations | 35% | $189 | ||||||
6 | Personal care and service occupations | 33% | $171 | ||||||
7 | Management occupations | 32% | $446 | ||||||
8 | Production occupations | 29% | $205 | ||||||
9 | Food preparation and serving related occupations | 27% | $132 | ||||||
10 | Community and social services occupations | 24% | $211 |
State Certifications and Licenses data allows the user to analyze earnings data with and without a certification or license, or with a certification only (no license) by state. The LMI Institute suppressed all data with less than 30 observations from its analysis. As a result, occupational earnings data for workers with a certification only are limited to just the largest states. It is important to note that these are only estimates and we have not tested the degree of correlation or statistical significance of the differences in certification attainment and wages. We hope these initial estimates will encourage further research.
The LMI Institute recently presented a webinar on “How LMI Institute State Certifications and Licenses Data Informs State-Level Research” to its members as part of the LMI Workforce Roundtable Series. This data can drive research into sub-population attainment of certifications and licenses and high-value credentials required for occupations or that substantially increase earnings. Watch this presentation to learn more about how your state can benefit from increase understanding of certification and license attainment and their associated earnings! See the Webinar HERE.
Use the data explorer below to see where your state ranks relative to the Nation and its Region in the difference in earnings for workers with and without a Certification (but no License). Select your state’s Region to explore how your Region’s occupations with the greatest difference between workers with and without a certification (but no license). Hover over the data for more details on certification attainment and earnings with and without a certification (but no license). [1]
The Bureau of Labor Statistics’ (BLS) Current Population Survey collects information on the prevalence of certifications and licenses in the United States, published annually. Using this data, the Labor Market Information (LMI) Institute produced state-level estimates on the prevalence of certifications and licenses, including tables comparing certification and licensure by educational attainment across occupations, age, race and ethnicity, and gender.
[1] All data with less than 30 observations has been suppressed from the data. Observations for earnings are generally lower than for attainment and are generally lowest at lower levels of education.