The Impact of Credentials, Skill Levels, Worker Training, and Motivation on Employment Outcomes: Sorting Out the Implications for Economic Development Policy

It has long been clear that increased education is associated with improved employment outcomes. However, the reason for this relationship is not fully understood. The purpose of this research was to examine the relative impact of general skill level, job-specific training, credentials, and motivation on employment outcomes for labor market entrants who have recently finished their education. The data for the study were drawn from the 1986 follow-up of the High School and Beyond longitudinal survey sponsored by the U.S. Department of Education. The sample consisted of 1980 high school seniors and sophomores who were interviewed first in 1980 and reinterviewed every two years thereafter to 1986. The research findings are examined for their implications for economic development policy.