Study: Grads earn more when jobs match academic training

Job seekers fill out application forms at a job fair in Manila, Feb. 24, 2023.

Philippine Star / Edd Gumban

MANILA, Philippines — Graduates tend to earn more when their jobs match their academic training, according to a study conducted by the Philippine Institute for Development Studies.

The PIDS study – Labor Market Outcomes of Education Graduates in the Philippines: The Role of Licensure Credentials and Job Matching – also showed that licensure alone was not significantly associated with higher wages.

It is authored by PIDS research specialist Anna Rita Vargas, research analyst Paola Ellaine Luzon and senior research fellow Connie Bayudan-Dacuycuy, who examined the labor market outcomes of Filipinos aged 22 to 60 with bachelor’s degrees in education science and related fields.

Using data from the July 2024 round of the merged Labor Force Survey-Annual Poverty Indicators Survey, the researchers analyzed outcomes among education graduates with or without professional licenses.

The study’s weighted estimates represented approximately 1.83 million graduates nationwide.

The authors said among licensed graduates, the predicted probability of underemployment was 3.98 percent for those in public-sector employment, compared with 14.73 percent for those in private-sector employment or who are self-employed.

The researchers recommended aligning curricula and licensure preparation with labor market needs and strengthening career pathways for licensed and unlicensed education graduates.

The PIDS added that the relationship between licensure and wages also varies by employment sector.

In particular, the results suggest that the financial benefits associated with licensure differ between those employed in government or government-controlled corporations and those working elsewhere.

“These findings mean that having a professional license does not automatically translate into higher pay. While a license can demonstrate professional qualifications and help graduates qualify for certain jobs, their earnings also depend on whether their work matches their training and the sector in which they are employed. The study identifies these relationships but does not establish that licensure or working in a particular sector directly causes higher earnings,” the study said.