Information Technology Wages and the Value of Certifications: A Human Capital Perspective

Although the value of Information Technology (IT) certifications has been widely debated in the IT industry, academia has largely ignored the issue. This study intends to bridge such a gap. Anchored on human capital theory and previous literature, we build a comprehensive model to estimate the value of various IT certifications in terms of their contributions to IT professionals’ wages. We estimate our model using third-party survey data. The three main findings from the study are: 1) IT certifications are valuable in general; 2) there is a substitution effect between IT certifications and education and between IT certifications and experience; and 3) the value of IT certifications are job and industry specific. In addition, we estimate wage premiums of various IT certifications in the study. From these findings, we draw managerial implications for current and future IT professionals, IT managers, and human resource managers.