Overview

Report title: Improving job seekers’ employment and earnings through credible skills signals ​

Source: J-PAL​

Year published: 2024

Sources
Categories
Preparation & Entry
Establishment & Growth
Maturity & Transition
Context
  • Many jobseekers—especially those without formal qualifications—struggle to prove their skills to employers, leading to mismatches, underemployment, and low wages​
  • Employers often rely on proxies like education or experience, which may not reflect actual ability, particularly in settings where credentials are inconsistent or hard to verify​
  • This insight draws on 21 randomized evaluations to assess whether third-party, credible signals of skills (like certification tests or digital badges) improve employment outcomes
Outcomes
  • Providing certified skills signals increased job offers and earnings in multiple studies—for example, in India, jobseekers who received a verified skills certificate were 33% more likely to receive a job offer​
  • In the U.S., a soft skills certification increased interview callbacks by 20%, especially for candidates with weaker résumés​
  • Signals were most effective when they were low-cost, widely recognized, and relevant to specific skills employers value—like digital literacy, teamwork, or technical ability
Implications
  • Invest in scalable certification tools—governments and workforce agencies should roll out low-cost, credible skills tests to help jobseekers signal ability without needing formal degrees​
  • Integrate skill signals into public job platforms—link digital badges or test results directly to jobseeker profiles to help employers identify qualified candidates quickly​
  • Prioritize relevance and recognition—focus on certifications that reflect what employers actually use in hiring decisions, and build employer awareness around these tools to increase uptake
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