Abstract:
Cognizant of the persistent concerns about the lack of alignment of skills and education with industry and occupation needs, this paper investigates 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 matter, but labor market experiences and structural mismatches play greater roles in determining pay premiums. There are observed payoffs in possessing a license when education and occupation credentials align. Beyond reforms in the education sector, policies are needed to ensure that education and learning translate to desirable labor market outcomes.
