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Holding New Credentials Accountable for Outcomes: We Need Evidence-Based Funding Models

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Bibliographic Details
Title: Holding New Credentials Accountable for Outcomes: We Need Evidence-Based Funding Models
Language: English
Authors: Matt Sigelman, Mark Schneider, Shrinidhi Rao, Scott Spitze, Debbie Wasden, American Enterprise Institute (AEI)
Source: American Enterprise Institute. 2025.
Availability: American Enterprise Institute. 1150 Seventeenth Street NW, Washington, DC 20036. Tel: 202-862-5800; Fax: 202-862-7177; Web site: http://www.aei.org
Peer Reviewed: N
Page Count: 9
Publication Date: 2025
Document Type: Reports - Research
Descriptors: Credentials, Education Work Relationship, Income, Labor Market, Employment, Career Change, Career Development, Accountability, Models, Educational Finance
Abstract: With over 1.1 million credentials available but only 12 percent delivering significant wage gains, learners face a chaotic marketplace that lacks effective oversight. The right credentials can be transformative, as credentials in the top decile yield annual wage gains of nearly $5,000, increase career switching success sixfold, and boost the probability of promotion in the earner's current field 17-fold. These outcomes serve as proof that well-designed programs can open doors to life-changing opportunities. This report used the Burning Glass Institute's comprehensive labor market database and identified a set of 23,444 commonly reported credentials from 2,056 providers to extract detailed information about the education, employment, wages, and demographics of those who earned them. The analysis considered three distinct dimensions of credential outcomes, all of which should enter the decision to pursue the credential: (1) if the credential increase the earner's wages; (2) if the credential facilitates a career switch they have been considering; and (3) if the credential helps them advance in their current field. Findings show the importance of a funding model that holds to account providers and the credentials they issue for whether they help earners earn more, switch careers, and move ahead, and whether they are valued by employers in practice. This model lets policymakers assess whether the credentials they fund are worth the investment. [This report was created with the Burning Glass Institute.]
Abstractor: ERIC
Entry Date: 2025
Accession Number: ED673952
Database: ERIC
Description
Abstract:With over 1.1 million credentials available but only 12 percent delivering significant wage gains, learners face a chaotic marketplace that lacks effective oversight. The right credentials can be transformative, as credentials in the top decile yield annual wage gains of nearly $5,000, increase career switching success sixfold, and boost the probability of promotion in the earner's current field 17-fold. These outcomes serve as proof that well-designed programs can open doors to life-changing opportunities. This report used the Burning Glass Institute's comprehensive labor market database and identified a set of 23,444 commonly reported credentials from 2,056 providers to extract detailed information about the education, employment, wages, and demographics of those who earned them. The analysis considered three distinct dimensions of credential outcomes, all of which should enter the decision to pursue the credential: (1) if the credential increase the earner's wages; (2) if the credential facilitates a career switch they have been considering; and (3) if the credential helps them advance in their current field. Findings show the importance of a funding model that holds to account providers and the credentials they issue for whether they help earners earn more, switch careers, and move ahead, and whether they are valued by employers in practice. This model lets policymakers assess whether the credentials they fund are worth the investment. [This report was created with the Burning Glass Institute.]