Returns to Professional Licenses and Education-Occupation (Mis)matching

Connie Author_Email: Bayudan-Dacuycuy, Anna Rita P. Author_Email: Vargas and Paola Ellaine D. Author_Email: Luzon

No DP 2025-32, Discussion Papers from Philippine Institute for Development Studies

Abstract: Cognizant of the persistent concerns about the misalignment of skills and education with industry and occupation needs, this paper investigates the returns to professional licenses alongside education-occupation matching. It also analyzes the effects of individual and higher education attributes on basic pay. Results indicate that individual and school characteristics are important, but labor market experiences and structural mismatches play a more significant role in determining pay premiums. There are observed payoffs in holding a license when education and occupation credentials align. Beyond reforms in the education sector, policies are needed to ensure that education and learning lead to desirable labor market outcomes. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph.

Keywords: labor market outcomes; returns to professional licenses; higher education institutions; education-occupation match; skill mismatch; overeducation; work experience (search for similar items in EconPapers)
Pages: 21
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:phd:dpaper:dp_2025-32

DOI: 10.62986/dp2025.32

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