Economic impact assessment of the CCPMO: Final report - CIPD

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25 27 29 31 33 35 37 39 41 43 45 47 49 51 25 53 27 55 29 57 31 59 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 Section 4 The economic return to professional qualifications Figure 8: Qualification-adjusted age-earnings profiles Male age-earnings profile £ 5 0 , 0 0 0 £ 4 5 , 0 0 0 £ 4 0 , 0 0 0 £ 3 5 , 0 0 0 £ 3 0 , 0 0 0 £ 2 5 , 0 0 0 £ 2 0 , 0 0 0 £ 1 5 , 0 0 0 £ 1 0 , 0 0 0 £ 5 , 0 0 0 £ 0 N o q u a l i f i c a t i o n s N o p r o f e s s i o n a l q u a l i f i c a t i o n s P r o f e s s i o n a l q u a l i f i c a t i o n s Female age-earnings profile £ 3 5 , 0 0 0 £ 3 0 , 0 0 0 £ 2 5 , 0 0 0 £ 2 0 , 0 0 0 £ 1 5 , 0 0 0 £ 1 0 , 0 0 0 £ 5 , 0 0 0 £ 0 N o q u a l i f i c a t i o n s N o p r o f e s s i o n a l q u a l i f i c a t i o n s P r o f e s s i o n a l q u a l i f i c a t i o n s Note: Smoothed using simple 5-year moving average. Includes individuals in employment only. Source: London Economics based on Labour Force Survey. London Economics December 2008 28
Section 4 The economic return to professional qualifications 4.4.2 Isolating the impact of different qualifications While this indicates that individuals holding professional qualifications receive significantly higher wages than those that do not, we cannot equate this difference with the returns to professional qualifications. This is because, as indicated in the discussion above, there are likely to be differences in other personal characteristics (such as other qualifications held) between the two groups that also contribute to this wage difference. Further, it is possible that the wage effect underestimates the benefit of achieving professional qualifications in some way, as we might also expect that holding a professional qualification has an effect on an individual’s probability of being employed – and hence their lifetime earnings. To disentangle these factors, we carried out a series of regressions to estimate the hourly earnings premiums and employment likelihoods associated with professional qualifications and membership of a professional institute. The main results are displayed in Table 5. Note that the results presented in Table 5 are cumulative in the sense that an individual in possession of professional qualifications and membership of a professional institute will achieve both the earnings premiums displayed. The results indicate that both men and women achieve significant wage returns both from undertaking professional qualifications and from being members of a professional institute. Between the ages of 35 and 39, for example, men who are members of a professional institute are estimated to receive a 15% wage premium (on top of the 15% premium associated with professional qualifications), holding other factors constant, while women achieve a 22% wage premium compared to their counterparts without membership (on top of the 14% premium associated with professional qualifications). Table 5: Hourly earnings premiums by qualification level Men Women Professional qualifications Membership of prof. institute Professional qualifications Membership of prof. institute 25-29 0.21 0.14 0.13 0.19 30-34 0.20 0.00 0.13 0.30 35-39 0.15 0.15 0.14 0.22 40-44 0.16 0.20 0.14 0.35 45-49 0.21 0.19 0.17 0.15 50-54 0.12 0.27 0.13 0.00 55-59 0.15 0.00 0.13 0.19 60-64 0.23 0.26 n.a. n.a. Note: Earnings premiums represent the average return across all individuals holding that qualification, as a percentage of the wage of an individual with no formally recognised qualifications. Results set equal to zero if not statistically significant at a 10% significance level. Source: London Economics based on Labour Force Survey. London Economics December 2008 29
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Page 5 and 6: Contents Page 6 References 38 Annex
Page 7 and 8: Foreword Foreword In recent years t
Page 9 and 10: Executive Summary Executive Summary
Page 11 and 12: Executive Summary Training Professi
Page 13 and 14: Executive Summary The skills provid
Page 15 and 16: Section 1 Introduction and backgrou
Page 17 and 18: Section 2 Overview of the CCPMO 2 O
Page 19 and 20: Section 2 Overview of the CCPMO 2.3
Page 21 and 22: Section 2 Overview of the CCPMO Fig
Page 23 and 24: Section 2 Overview of the CCPMO 20%
Page 25 and 26: Section 2 Overview of the CCPMO 2.4
Page 27 and 28: Section 3 The contribution of the C
Page 35 and 36: Section 4 The economic return to pr
Page 41: Section 4 The economic return to pr
Page 51 and 52: Section 5 Concluding remarks from t
Page 53 and 54: Section 6 References Sector Skills
Page 55 and 56: Annex 1 The Skills Strategy employe
Page 57 and 58: Annex 1 The Skills Strategy issues
Page 59 and 60: Annex 1 The Skills Strategy have ac
Page 61 and 62: Annex 1 The Skills Strategy access
Page 63 and 64: The Members of the CCPMO The Member
Page 65 and 66: The Members of the CCPMO The Instit
Page 67: 11-15 Betterton Street London WC2H

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