Eliminating Degree Requirements: A Popular Policy with Limited Impact
In a recent speech in Pennsylvania, Kamala Harris announced her plan to eliminate degree requirements for hundreds of thousands of federal jobs if elected. This policy, known as “skills-based hiring,” has gained significant popularity among voters, which is why Harris has made similar promises before. The Trump administration also attempted to loosen degree requirements in federal hiring through an executive order, showing rare bipartisan support for this idea. However, the execution of that order, issued just before the 2020 election, seems to have had little impact.
The appeal of skills-based hiring is understandable. Nearly 60% of adults aged 25 to 29 do not have a bachelor’s degree, and if they possess the skills for a job, it seems unfair to deny them opportunities solely based on a lack of a college degree. Yet, the limitations of this policy are significant. Studies show that even when companies remove degree requirements from job postings, the impact on hiring practices is minimal. For example, a Harvard Business School study found that the share of hires without a bachelor’s degree increases by only 2 percentage points when degree requirements are dropped. Employers may stop requiring degrees, but they still prefer candidates who have them. This reveals a deeper issue: the lack of alternative ways for workers to prove their qualifications.
The Real Challenge: Alternative Pathways for Non-College-Educated Americans
Expanding opportunities for non-college-educated Americans requires more than just removing degree requirements. The real challenge lies in creating credible, widely recognized alternatives to the college degree. If political leaders are serious about helping Americans without a bachelor’s degree, they need to focus on building robust systems of nondegree credentials, such as certifications, apprenticeships, and vocational training programs. These alternatives must send a clear signal to employers about a worker’s skills and annonce.
For example, a cardiovascular technician with a certificate from one community college may struggle to demonstrate the value of their credentials to employers in another state. This variability in quality and recognition creates confusion for employers and limits workers’ mobility and career prospects. A bachelor’s degree, on the other hand, is a standardized credential that employers understand and trust. To level the playing field, the U.S. needs a more comprehensive and standardized approach to career and technical education.
The current focus on demand-side policies, such as increasing Pell Grants and forgiving student loans, has not solved the problem. While these policies help low-income students access higher education, they do not address the lack of alternative pathways for those who do not pursue a four-year degree. The U.S. spends just 0.03% of its GDP on job training, far less than other advanced economies. This underinvestment in career and technical education has led to a shortage of skilled workers in critical fields like plumbing and healthcare.
The Role of Employers in Skills-Based Hiring
Employers play a significant role in the persistence of degree requirements, even when they are not formally mandated. College degrees serve as a signal of a candidate’s potential, making it easier for employers to differentiate between applicants. While skills-based hiring sounds appealing, the difficulty of verifying skills without a degree creates a barrier. Employers often lack the incentive to invest in verifying the skills of non-degree holders, especially when the labor market is competitive.
The problem is not that employers are unwilling to hire non-degree candidates but that they lack a reliable way to assess their qualifications. This is why bipartisan efforts to remove degree requirements have had limited success. Without a credible alternative to the college degree, employers will continue to rely on it as a proxy for skills and potential. To truly expand opportunities for non-college-educated Americans, policymakers must create a system of credentials that employers trust and understand.
Expanding Apprenticeships and Creating National Standards
One promising solution is to expand apprenticeship programs, which combine paid on-the-job training with classroom instruction. These programs have been shown to produce significant earnings gains for participants. However, apprenticeships are often small in scale and expensive to implement. In 2021, there were over 25,000 registered apprenticeship programs in the U.S., but each served an average of fewer than 10 apprentices.
A more scalable approach is the FastForward Program in Virginia, which has funded career-oriented training for nearly 45,000 learners in 23 community colleges. The program creates career maps in high-demand fields like manufacturing and health sciences, allowing students to earn industry-recognized credentials that can be stacked to qualify for better-paying jobs. Early evaluations show that participants who received such credentials experienced a $4,000 increase in annual earnings.
To replicate this success nationally, Congress could create a federal certification program for career pathways in fields with strong demand and upward mobility potential. Federal standards would ensure that credentials are consistent and recognizable across states, making it easier for workers to move between jobs and regions. This approach would also help employers trust the qualifications of non-degree candidates, reducing their reliance on the college degree as a proxy for skills.
The Need for Institutional Investment in Career and Technical Education
Building better pathways for career and technical education requires institutional investment rather than market-based reforms. The federal government has a critical role to play in setting national standards and providing funding for career and technical education programs. While cities and states should tailor their programs to local economic needs, only the federal government can provide the funding and credibility necessary to create a robust, nationwide system of nondegree credentials.
The Biden administration’s approach to infrastructure investment and clean energy offers a useful model for how to approach career and technical education. By combining federal funding with local expertise, policymakers can create programs that are both scalable and responsive to the needs of workers and employers. This institutional approach is essential for addressing the skills gap and expanding opportunities for the millions of Americans without a four-year degree.
Conclusion: The Path Forward for Skills-Based Hiring
While eliminating degree requirements for federal jobs is a step in the right direction, it is not a panacea for the challenges faced by non-college-educated Americans. To truly expand opportunities, policymakers must invest in creating alternative pathways to success, such as apprenticeships and standardized credentialing systems. These efforts require a commitment to institutional building and federal leadership, rather than relying solely on market-based reforms.
The college degree will likely remain a preferred credential for employers, but it does not have to be the only pathway to success. By investing in career and technical education and creating a robust system of nondegree credentials, the U.S. can create more opportunities for workers without a bachelor’s degree. This approach will not only help individuals achieve their potential but also address the critical skills gap in key industries. The time to act is now, and the federal government must take the lead in building a more inclusive and equitable system of workforce development.