Gender and Educational Variations in the Earnings Premiums of Occupational Credentials

Occupational credentials such as professional licenses and certifications are known to generate significant earnings premiums. Based on this, the federal workforce development policy focuses on industry-recognized occupational credentials for less-educated adults to help them obtain family-supporting jobs without having to invest in a postsecondary degree. This study used data from the 2016–2019 Current Population Survey (CPS) outgoing rotation group samples to examine differences in the earnings premiums associated with occupational credentials by gender and education. Our analyses revealed that the earnings premium of job-required credential holding was greater for women than men. For women, estimates of the earnings premiums do not vary much by education level, while for men, those without a Bachelor's degree tend to have high premiums than those without.

Occupational Career Change and Gender Wage Inequality

This article examines the relationship between the changing occupational careers of female wage earners and gender wage inequality. Using Current Population Survey-Merged Outgoing Rotation Group data, it assesses the effect on the gender wage gap of changes in the composition and price both of care-providing occupations that are culturally associated with female labor and of managerial and professional occupations that are not part of the care economy, over the period 1979 to 2015. It finds that the rapid entry of female workers into high-wage managerial occupations, and their exit from low-wage private household work, contributed to gender wage convergence. However, the wage-equalizing effects of occupational shifts and related behavioral changes diminish over time, and wage convergence ceases after 2007. It also finds that female workers continue to be disadvantaged by wage dispersion and that most of the remaining gender wage gap arises within occupations. The concluding sections discuss the findings and their implications for closing the wage gap.

Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?

This paper shows that a large fraction of the 1973–2003 growth in residual wage inequality is due to composition effects linked to the secular increase in experience and education, two factors associated with higher within-group wage dispersion. The level and growth in residual wage inequality are also overstated in the March Current Population Survey (CPS) because, unlike the May or Outgoing Rotation Group (ORG) CPS, it does not measure directly the hourly wages of workers paid by the hour. The magnitude and timing of the growth in residual wage inequality provide little evidence of a pervasive increase in the demand for skill due to skill-biased technological change.