A four-year degree is one path to higher earnings, but it is not the only one. And, for millions of women, it is neither the fastest nor the most affordable.

New U.S. Census Bureau research found that 37% of adults ages 25 to 64 with at least a high school diploma also hold a nondegree credential. These include certificates, industry certifications, or licenses. Full-time workers with one of those credentials reported 16.4% higher median annual earnings than workers without one.

Women hold these credentials at a slightly higher rate than men (36.1% vs. 32.8%). Fields many women enter—such as health care, education, and licensed personal-care work—require credentials. Women use every available path to earn their credentials, not just the campus route.

That is a reminder that skills still matter and that treating a bachelor’s degree as the only ticket to the middle class leaves a lot of talent on the table.

Defining Credentials

Credentials are not “some college” coursework. They show relevant, job-specific knowledge and experience.

Nondegree credentials (NDCs)  include certificates, certifications, and licenses. Certificates are awarded by community colleges and technical schools. Certifications are provided by industry groups or companies to new workers, usually after training and an exam, but they can expire. Licenses are obtained through the government, which grants workers permission to work in a field. 

Requirements for credentials and the credentials themselves differ by occupation and state. For example, EMTs, cosmetologists, barbers, and attorneys need a license in every state and D.C. What varies is the burden. The Institute for Justice finds aspiring cosmetologists spend about 342 days in required training on average, versus about 36 days for entry-level EMTs, even though EMTs handle life-or-death care. Hair braiding is a clearer split since 38 states require no license at all.

The Payoff for Credentials and Education

Credentials can provide steady work and good pay, and adding education can boost earnings. However, that depends on the type of credential and the level of education.  

Using 2019–2024 Survey of Income and Program Participation (SIPP) data, the Census Bureau finds:

  • Workers with only a high school diploma earned 7.4% more with a certificate or a certification/license and about 21% more with both.
  • Workers with some college or an associate degree earned 10.9-16.2% more with a certification, license, or stacked credential.
  • For bachelor’s degree holders, only certifications and licenses showed a meaningful bump of about 5%.

In some comparisons, a high school graduate with a certification or license earned about as much as someone with some college or an associate degree and no credential. However, the Census Bureau notes that the survey does not show when the credential was earned or whether it matches the current job. Quality still matters.

Relevance Beats Collecting Badges

The credential market is crowded. Brookings researchers, using tens of millions of résumés, found that job relevance is what pays. A first relevant credential is associated with a 3.8% wage premium, more than double the return on one that does not match the job. Workers without a bachelor’s degree see larger gains: about 6.8% on a first relevant credential.

An earlier Census story on manufacturing found the same pattern: Industry-backed credentials were tied to higher pay even without a college degree.

A large share of American jobs still do not require a bachelor’s for entry. While four-year-degree occupations pay more on average, they are not the whole labor market.

Licenses can raise pay and close doors

A license can prove competence. It can also become a permission slip that prices women out of work they already know how to do. Women are more likely than men to hold a license, in part because female-dominated jobs are heavily licensed. Military spouses lose work every time they move and have to requalify. The answer isn’t “no standards”; it is standards that match the job.

Degrees still carry a large average earnings premium over a career. College is not worthless. But hiring rules and public dollars should follow results from time, cost, and earnings in the occupation the credential is built for, and not how many programs a catalog can list.

Women do not need one approved path to the middle class. They need the freedom to choose the one that fits their skills, their families, and their bills.