Microsoft Certification

Abstract
Using data from a Microsoft survey and the Current Population Survey, we examine the returns to Microsoft Certification. The formal structure of Microsoft Certification provides a well documented external measure of cnputer skills rather than the ad-hoc self reports used in other research. We find that the wage premium for MS certification may be over 30% in the full labor market. This measure, using all workers as the reference, likely captures broad skills generally associated with cnputer use.
When certificate holders are cnpared to only individuals in IT occupations, the overall wage premium falls to a range of 3-7%. The difference in these two measures captures the return to general cnputer skills and general human capital associated with those skills. We find that the hierarchical structure of Microsoft Certification is reflected in the wage premium associated with specific certificates, further supporting the claim that these certificates measure skills valued in the labor market. We also find that different IT ccupations have different values for these skills. The similarity between the return to certification and the return to general education is examined and we concluded that certification measures specific human capital while years of education measure a more general human capital.