The Evolving Value of Credentials: A Fresh Era of Accountability in Higher Education
As the cost of college continues to rise, and the job market demands increasingly specialized skills, a critical conversation is unfolding around the return on investment of higher education. The Lumina Foundation is at the forefront of this discussion, tracking which credentials translate into tangible economic benefits for Americans.
The ‘Credentials of Value’ Baseline: Where Do We Stand?
The foundation’s latest A Stronger Nation report reveals that, as of 2024, 43.6 percent of U.S. Adults in the labor force – those working, seeking work, or serving in the military – possess a degree or credential that demonstrably increases their earning potential. This represents defined as earning at least 15 percent more than individuals with only a high school diploma. This represents an increase from 39 percent in 2009, signaling a broader expansion of post-secondary education and training.
Shifting Expectations: From Access to Economic Outcomes
Courtney Brown, vice president of strategic impact and planning at the Lumina Foundation, highlights a fundamental shift in perspective. “People began asking not just if I can get a credential but is it actually going to lead to a better job with higher pay,” she explains. This demand for demonstrable value is driving a new era of accountability in higher education, forcing institutions and policymakers to focus on outcomes rather than simply access.
The Landscape of Credential Value: Degrees vs. Certificates
While a bachelor’s degree remains a strong predictor of economic success – with approximately 70 percent of graduates earning at least 15 percent more than those with a high school diploma – the report reveals a wider range of outcomes for associate degrees and shorter-term credentials. Roughly 55 percent of those with a certification and 54 percent with an associate degree meet the 15 percent earnings benchmark.
Opportunities for Improvement in Non-Degree Credentials
This disparity underscores the need to strengthen the quality and alignment of shorter-term credentials with labor market demands. The Lumina Foundation’s data suggests that many credentials *are* delivering value, but others could be improved to better prepare individuals for well-paying jobs.
State-by-State Disparities and the 2040 Goal
The report also highlights significant regional variations. States like Colorado (51.7 percent), Massachusetts (52.5 percent), and the District of Columbia (67.7 percent) exceed the national average in terms of adults holding credentials with economic value. Conversely, West Virginia (34.6 percent), Nevada (33.6 percent), and Puerto Rico (25.7 percent) lag behind.
The Lumina Foundation has set an ambitious goal: by 2040, 75 percent of working-age adults in the U.S. Labor force should possess a degree or credential that leads to economic prosperity. This baseline data establishes a clear starting point for tracking progress toward this objective.
Puerto Rico: A Unique Case Study
Puerto Rico presents a particularly intriguing case. Despite a relatively high degree-attainment rate (60.1 percent), the territory has the lowest share of adults earning at least 15 percent more than those with only a high school diploma. This is likely linked to lower overall income levels in the region.
Looking Ahead: Strengthening the Education-to-Employment Pipeline
The Lumina Foundation’s research emphasizes the importance of strengthening the connection between education and the labor market. This requires a collaborative effort involving educational institutions, policymakers, and employers to ensure that credentials are aligned with the skills and knowledge that employers demand.
“I don’t see this as a story about education failing. I see it as a story about progress,” Brown states. “It’s a story about transparency and evolving expectations about what people are looking for and what they want to make sure they get.”
Did you know?
The Lumina Foundation’s 2040 goal is specifically defined as earning at least 15 percent more than someone with only a high school diploma, providing a clear and consistent benchmark for measuring economic success.
FAQ
Q: What is considered a “credential of value”?
A: A credential of value is a degree or certification that leads to earnings at least 15 percent higher than those with only a high school diploma.
Q: What percentage of U.S. Adults currently hold a credential of value?
A: As of 2024, 43.6 percent of U.S. Adults in the labor force hold a credential of value.
Q: What is the Lumina Foundation’s goal for 2040?
A: The Lumina Foundation aims for 75 percent of working-age adults in the U.S. Labor force to have a degree or credential leading to economic prosperity by 2040.
Q: Are associate degrees and certifications as valuable as bachelor’s degrees?
A: While bachelor’s degrees generally offer a more reliable pathway to higher earnings, associate degrees and certifications can also be valuable, but outcomes vary more widely.
Pro Tip: When choosing a program, research the employment outcomes of graduates and ensure the curriculum aligns with current labor market demands.
What are your thoughts on the value of credentials? Share your experiences and insights in the comments below!
