Xueying Mei

There is a large and growing number of non-degree credential offerings between a high school diploma and a bachelor's degree, as well as degree programs beyond a bachelor’s degree. Nevertheless, research on the financial returns to non-degree credentials and degree-granting programs is often narrow and siloed. To fill this gap, we leverage a national sample of individuals across nine MSAs and four industries to examine the relative financial returns to a variety of non-degree credentials and degree programs. Leveraging two-way fixed-effect models, we explore the relationship between completing a credential or degree and earnings premiums. We find that an associate’s, bachelor’s, master’s and doctorate degree follows a similar model of returns in which the number of schooling years is linearly related to proportional earnings premiums. However, students completing sub-baccalaureate certificates and earning non-school credentials appear to get larger financial returns for less time. Additionally, while we noticed subtle differences across degree programs, we noticed substantial differences in non-school credentials: only women experienced a significant earnings premium from a non-degree credential. Finally, in terms of race/ethnicity, students of color often experienced larger economic returns to undergraduate certificates and degree programs.

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