Study Insights:
- Education graduates tend to earn more when their jobs match their academic training, while licensure alone was not significantly associated with higher wages in the study’s wage model.
- Among licensed graduates, the predicted probability of underemployment was 3.98% for those in public-sector employment, compared with 14.73% for those in private-sector employment or who were self-employed.
- The researchers recommend aligning curricula and licensure preparation with labor market needs, and strengthening career pathways for licensed and unlicensed education graduates.
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Education graduates tend to earn more when their jobs match their field of study, but holding a professional license alone does not necessarily translate into higher pay. The relationship between licensure and wages also varies by employment sector, according to a study by the 草莓视频 (PIDS).
The study, “”, by PIDS 草莓视频 Specialist Anna Rita P. Vargas, 草莓视频 Analyst Paola Ellaine D. Luzon, and Senior 草莓视频 Fellow Connie G. Bayudan-Dacuycuy, 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 and without professional licenses.
The study’s weighted estimates represented approximately 1.83 million graduates nationwide.
Job alignment and employment sector matter for earnings
The study found that education graduates generally earned more when they worked in jobs that matched their field of study and training.
In the wage model, education-occupation matching was significantly associated with higher wages, whereas licensure alone was not.
The findings also showed that the relationship between having a license and earning higher wages differed depending on whether graduates worked in the public or private 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.
Lower underemployment probability among licensed graduates in public-sector jobs
The study also examined underemployment, which refers to employed individuals who want additional working hours, another job, or a new job with longer hours.
Among licensed education graduates, the predicted probability of underemployment was 7.20% for those working in education-related occupations, compared with 8.46% for those employed outside their field.
For unlicensed graduates, the corresponding probabilities were 7.89% among those working in education and 7.12% among those working outside the field.
Public sector employment was associated with a particularly lower risk of underemployment among licensed graduates. The predicted probability was 3.98% for licensed graduates working in the public sector, compared with 14.73% for those working in the private sector or being self-employed.
The researchers suggest that differences in working hours and workloads across employment settings may help explain this pattern, although the analysis does not establish the cause of the difference.
Licensure associated with stronger employment outcomes
The study’s descriptive findings showed differences in labor market outcomes between licensed and unlicensed education graduates.
About 90% of licensed graduates participated in the labor force, compared with 68% of those without a license.
Employment was higher among licensed graduates, at 84%, compared with 54% among unlicensed.
Unemployment stood at 6% among licensed graduates and 14% among those without a license.
Licensed education graduates exhibit stronger labor market outcomes compared to their unlicensed counterpart, which includes higher labor force participation and more stable employment.
Occupational patterns also differed, given the role of licensure in helping education graduates enter occupations that align with their academic preparation.
Among employed graduates, 83% of those with a license worked as teaching professionals, compared with 26% of those without one.
Approximately 45% of unlicensed graduates worked as general and keyboard clerks, customer service clerks, or sales workers.
The findings indicate that licensed graduates were more likely to work as teaching professionals, while many unlicensed graduates worked in other occupations.
They also highlight the importance of considering job alignment and employment conditions, rather than employment status alone, when assessing graduates’ labor market outcomes.
Strengthening career pathways and licensure support
The researchers recommended closer coordination among the Commission on Higher Education (CHED), the Professional Regulation Commission (PRC), and the Department of Education (DepEd) to align education curricula, licensure examination competencies, instructional quality, and practicum requirements with labor market needs.
“For education program graduates, having a license alone does not significantly improve one’s labor market experience,” the study said.
They also called for targeted capacity-building programs for higher education institutions with consistently low performance on licensure examinations.
Suggested interventions include faculty development, improved instructional resources, review sessions, practice examinations, and partnerships with high-performing institutions.
Other recommendations include structured licensure preparation and support for graduates facing financial or academic barriers, as well as better integration of licensure, education, and employment data into national labor market information systems.
“There is also a need to strengthen and establish well-defined career pathways for education graduates that improve job matching for both licensure and non-licensure programs,” the authors noted.
The study further recommends reviewing incentive systems for educators in both the public and private sectors to better support teacher quality and learning outcomes.
Read the full study at . ### —RTG
