Basing Jobs on Skills Instead of Credentials Increases Fairness, Efficiency, and Opportunity

(p. B5) For the past four decades, incomes rose for those with college degrees and fell for those without one. But a body of recent and new research suggests that the trend need not inevitably continue.

As many as 30 million American workers without four-year college degrees have the skills to realistically move into new jobs that pay on average 70 percent more than their current ones. That estimate comes from a collaboration of academic, nonprofit and corporate researchers who mined data on occupations and skills.

. . .

“We need to rethink who is skilled, and how skills are measured and evaluated,” said Peter Q. Blair, a labor economist at Harvard, who was a member of the research team.

In recent years, labor experts and work force organizations have argued that hiring should increasingly be based on skills rather than degrees, as a matter of fairness and economic efficiency. The research provides quantified evidence that such a shift is achievable.

. . .

The researchers published a broad look at the jobs, wages and skills of workers who have a high school diploma but not a four-year college degree as a National Bureau of Economic Research working paper this year. They found a significant overlap between the skills required in jobs that pay low wages and many occupations with higher pay — a sizable landscape of opportunity.

. . .

A report published this week, involving most of the same researchers, examined the pathways to higher-paying jobs for these workers, their experience and the obstacles encountered. It employed proprietary data and interviews, as well as the government data used in the first study.

For the full story, see:

Steve Lohr. “Up to 30 Million Workers in U.S. Have Abilities to Earn 70% More.” The New York Times (Monday, December 7, 2020): B5.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the story has the date Dec. 3, 2020, and has the title “Up to 30 Million in U.S. Have the Skills to Earn 70% More, Researchers Say.”)

The National Bureau of Economic Research (NBER) working paper mentioned above is:

Blair, Peter Q., Tomas G. Castagnino, Erica L. Groshen, Papia Debroy, Byron Auguste, Shad Ahmed, Fernando Garcia Diaz, and Cristian Bonavida. “Searching for Stars: Work Experience as a Job Market Signal for Workers without Bachelor’s Degrees.” National Bureau of Economic Research, Inc., NBER Working Paper #26844, March 2020.

The later report that used proprietary data and interviews is:

“Navigating with the Stars: Reimagining Equitable Pathways to Mobility.” Opportunity@Work, Nov. 2020.

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