Using Certification to Increase the Returns to Human Capital: A Field Experiment in Bangladesh

Recognition of Prior Learning systems (RPLs) certify human capital that has been acquired outside of the formal education system. Such certification can reduce inefficiency and improve labor market outcomes by allowing workers to credibly indicate their level of competence to employers. RPLs are a common component of National Qualifications Frameworks (NQFs), which have been implemented in over 100 countries with the goal of standardizing criteria for competence within occupations. We intend to conduct the first randomized impact evaluation of an RPL. The study willt ake place in Bangladesh, where the World Bank has recently created an RPL in several occupations in collaboration with the Bangladesh Government. The impact of the RPL, however, depends on how worker characteristics and skills certification are valued by employers. Thus we are seeking funding to conduct a complementary study on whether and how employers value human capital and skills certification in the labor market.