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Revisiting my PhD thesis on study of effectiveness of training and skill development and reflecting on its relevance now during Corona Pandemic in the country.

2021, Academia Letters

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RESEARCH REVIEW International Journal of Multidisciplinary, 2019

India is recognized as one of the youngest nations in the world with over 50% of the population under 30 years. It is estimated that by about 2025, India will have the 25% of the total global workforce (World Competitiveness Yearbook, 2012). Hence, there is a need to further develop and empower the human capital to ensure the nation"s global competiveness. As far the economic progress of our country is concerned, India is still lagging behind due to various problems like poverty, unemployment, illiteracy, medical infrastructure etc. Youth plays a crucial role in achieving economic prosperity of the country. In the present scenario, it is found that most of the youth being educated are facing severe unemployment problem due to lack of skills and technical knowledge. Most of them are unaware of the developments taking place in the modern world. The present paper is based on the secondary data which was collected from different researches. The study focused on the skill development programmes implemented in India. This study is to investigate the existing literature for the skill development programmes and leveraging the demographic proportion in India by making them more skilled and employable. This literature survey is to review the various initiatives taken by Government of India, programmes conducted through public and private partnership, ways to increase the employability skills, challenges faced for the success of the programme, etc. The study also discusses about the skills imparted through educational programmes and requirement of additional sector specific courses. Hence, the paper will highlight the needs, challenges and scope of the skill development programmes.

Globalization, knowledge and competition have intensified the need for highly skilled workforce in both the developing and developed nations as it enables them to accelerate their growth rate towards higher trajectory. For India, skill development is critical from both socioeconomic and demographic point of view. Therefore, the present paper attempts to study the present skill capacity, challenges in front of skill development initiatives in India along with their solutions. The skill capacity has been assessed in the form of general education and vocational training level of the Indian workforce in the age group of 15-59 and which was found to extremely low i.e. around 38% of the workforce are not even literate, 25% are having below primary or up-to primary level of education and remaining 36% has an education level of middle and higher level whereas only 10% of the workforce is vocationally trained (with 2% formal and 8% informal training). The study also found that both the Government and its partner agencies have undertaken various measures/initiatives for the effective implementation of the skill development system in the economy, but still faces a number of unresolved issues/challenges that need immediate attention of the policy makers. Hence, skill development initiatives of the government should focus on these obstacles and develop the programs accordingly to resolve these hurdles for the complete success of the skill development initiatives.

By the next decade India would be the youngest country of the world. All countries then would look towards India for supporting their aging population and economy. It is imperative for India that by then youths of India should sufficiently develop themselves in not only taking care of their country but be prepared for the whole world. In India the Vocational Education is being implemented under Human Resource Development, and Vocational Training is being implemented under Ministry of Skill Development and Entrepreneurship to provide skilled manpower in different vocations. For driving any economy competent manpower is a prime success factor. India needs large base of skilled and competent manpower to become superpower and developed nation. India has underscored the essential need of preparing skilled human resource through skill development programme, for enhancing the productivity of the youth and for a sustained and faster growth of economy. India needs many changes in Vocational ...

The present central government led by Shri Narendra Modi has taken the initiative for improvement of skill among the educated youth of our country so that the employability will increase which will ultimately improve the national productivity. In this connection some new skill development program has been taken into consideration both in central and state level of our country. Demand for skilled work force is the need of the hour and keeping this in mind the government has targeted to improve the skill of 500 millions of youth of our country by 2020. This initiative not only provide employment opportunity in the country but also enable the youth force to compete with other developed nations. In order to meet the program the govt. has set up a fund monitoring committee at the central level so that the financial position of organizations associated with this program will improve. Different technical courses and vocational education course should change and prepared as per the requirement of the corporate at large. Fund allocation and fund utilization can be made properly in order to achieve the maximum benefit from all these program. The target group will be the traditional, non-traditional, technical and non-technical youth of our country.

Objectives: The Indian government " s " Make in India " campaign and the accelerated growth in the economy has highlighted the demand for skilled manpower in the country. The objective of this article to understand the current state of vocational education and training and review the vocational training models of the emerging economies. Methods/Statistic Analysis: The Skill development model of India is studied in detailed with reference to the " Make In India " campaign. The vocational training model of the China and Brazil is also reviewed for the study as they are a part of the BRICS countries and also the emerging economies of the world. Singapore " s vocational education model is also studied to gain additional insights on the skill development initiatives and policies. Findings: The " demographic dividend " explains for India being the youngest workforce country in the world. The country will have the lowest median age much below that of China and Organisation forEconomic Cooperation and Development (OECD) Countries. It means that India can be the largest provider of workforce to the world. But still, India has difficulty to fill up jobs due to a shortage of applicants with the right skills and knowledge. It also brings out the difficulty the country faces with matching the jobs to the skills available. India is still behind countries like China and Singapore in imparting skills. The paper aids in analyzing the current skill gaps in the country and the areas where there is a huge scope of supply of skilled workforce. It aims to identify the challenges faced in development of skills in the country and highlighting the employment opportunities arising in the different sectors with emphasis on the Make in India campaign. Conclusion/Improvements: There is a huge scope of generating skilled workforce in the country and utilize the " demographic dividend ". The branding activities and active involvement of Public Private Partnership ensure a better supply of skilled workforce.

Skills and knowledge are the driving forces of economic growth and social development for any country. Countries with higher and better levels of skills adjust more effectively to the challenges and opportunities of work. As India moves progressively towards becoming a ‘knowledge economy’ it becomes increasingly important that the country should focus on advancement of skills and these skills have to be relevant to the emerging economic environment. The Planning Commission of India has estimated that around 500 million skilled persons are required by 2022 while the current capacity of the skill development program is 3.1 million. Considering issues like population growth, unplanned rural-urban migration, high school dropout rates, India is likely to witness a deficit of 5.25 million employable graduates and vocationally trained workforce in next few years. For a country that adds 12 million people to its workforce every year, less than 4 per cent have ever received any formal training. With most of the existing training infrastructures irrelevant to industry needs and a wasted human resource of the unskilled rural/urban youth due to lack of skills, the workforce readiness in India is the lowest among the developing countries in the world. Many of the youth develop, through their own creativity skills, which is not adequate. They must be supported in actual work based systems, for which the skill development must be reoriented accordingly. As skill development in a large scale takes off, implementing agencies of government agencies, private institutions, industries and other vocational training providers would be faced with challenges that come up at every phase of the skill development value chain.

The globalised world demands vocational skilled manpower to convert growth opportunities into jobs and stable incomes. With millions of new job-seekers entering the job market every year, vocational skill development has become one of India’s urgent priorities. Skill development is one of the essential ingredients for India's future economic growth as the country transforms into a diversified and internationally-competitive economy. Skill development is going to be the defining element in India's growth story. The present paper attempts to study the present skill capacity, need of skill development in India, review the skill development policies, challenges for Skill development along with their solutions. The paper studied the relationship between education, employment and Skill development. The study also found that both the Government and its partner agencies have undertaken various measures/initiatives for the effective implementation of the Skill development system in the country, but there are big challenges which needs quick resolution. A survey (random survey) method was employed to elicit primary information from 100 students who took STAR training from different NSDC partners in Lucknow. The findings seek to answer some basic questions. Are the youths being really mobilized to be skilled outside the formal education system? Is the training delivery mechanism good enough to make the students employable? Would the industries be willing to cut down the minimum qualification criteria to promote skill development .A questionnaire based on as random sampling, was employed for data collection. Data analysis was accomplished using simple weighted average and percentage method.

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India’s demographic dividend has been a matter of anticipation, aspirations, and ridicule, all at the same time. The government of India has been trying hard for over a decade now to enhance the skill level of this demographic bulge. The present paper is an attempt to evaluate all such attempts critically. After taking stock of the skill situation of India, the paper asserts that skilling initiatives in India have more to do with the number of people trained rather than quality and relevance of training. The paper cites relevant data to prove that vocational skilling initiatives have failed to meet the objectives. The scope of this paper is limited to skill creation for wage employment

This paper discusses the ways of promoting the development of our country through the mission " Skilled India ". Millions and millions of youth should go for acquisition of skills and there should be a network across the country for this and not the archaic systems. The youth should acquire the skills which could contribute towards making India a modern country. As India has suffered in basic skills a lot as they are obsessed for book reading and white collar jobs. That is why our country needs our own national policies to strengthen the ability of our workers to adapt to changing market demands and to benefit from innovation and investment in new technologies, health and infrastructure, etc. Recently there has been a renewed interest in training and skill development by the new government of India headed by Prime Minister of India Narendra Modi. Quality education, bridging the gap between world of work and training providers, continuous workplace for training, building competencies and training opportunities for both women and men can lead India on heights of success. Ultimately each country's prosperity depends on how many of its people are in work and how productive they are, which in turn rests on the skills they have and how effectively those skills are used .The paper underscores the need of a framework which will improve the recognition of vocationalisation and enhance the social status of the graduates of vocational training, hence, improved motivation for others to pursue vocational training. At the same time, it is important that the private sector should offer employment opportunities through increased investment and job creation.

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Dissertations / Theses on the topic 'Employee development and training'

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Marquis, Geraldine L. "Development of handbook addressing self-efficacy and intrinsic motivation in the corporate training setting." [Denver, Colo.] : Regis University, 2005. http://165.236.235.140/lib/GMarquis2005.pdf.

McCargar, Cindy L. "Development and evaluation of a train-the-trainer program for subject matter experts at Company X." Online version, 1999. http://www.uwstout.edu/lib/thesis/1999/1999mccargarc.pdf.

Seger, Alfiya, and Atoosa Graylee. "Employee development programs: Employee motivation to attend voluntary technical trainings in High-tech companies in Sweden." Thesis, Mälardalens högskola, Akademin för ekonomi, samhälle och teknik, 2013. http://urn.kb.se/resolve?urn=urn:nbn:se:mdh:diva-19482.

Zweni, Noluthando. "Employee participation in training and development at a selected municipality in the Western Cape, South Africa." Thesis, Cape Peninsula University of Technology, 2019. http://hdl.handle.net/20.500.11838/3029.

Ntile, Zukiswa. "Assessing the personal development of employees in a municipal environment." Thesis, Nelson Mandela Metropolitan University, 2014. http://hdl.handle.net/10948/d1020420.

Cox, Lillian Sharon. "Teacher empowerment change and Reading Recovery professional development training /." free to MU campus, to others for purchase, 2004. http://wwwlib.umi.com/cr/mo/fullcit?p3137691.

Black, Janice Adele. "The relationship of human resource development manager empowerment to organizational conditions." Diss., This resource online, 1993. http://scholar.lib.vt.edu/theses/available/etd-10022007-145213/.

Santos, Miller Amanda Carmin. "Training for the Future| College Student Employee Persistence through Engagement and Development." Thesis, University of La Verne, 2019. http://pqdtopen.proquest.com/#viewpdf?dispub=13806317.

Purpose. The purpose of this qualitative phenomenological study was to understand the lived experiences of student leader employees in relation to retention through the lens of development via engagement at a small, non-profit private university in Southern California.

Methodology. This study used a phenomenological approach to understand the lived experiences of student employee leaders. The researcher interviewed ten full-time undergraduate student employees who had been working in their leadership role for at least one year. The students interviewed were juniors and seniors.

Findings. The student employee leaders reported building strong relationships with their supervisors and peers as a result of on-campus employment. Students reported that their place of employment was a safe place for them to be and that they enjoyed the convenience of flexible hours and financial stability. The student employee leaders in this study felt supported and connected due to the people they have encountered throughout their employment at the institution. The student employee leaders also faced challenges and growth through their experiences working on campus. Lastly, students learned skills through various training methods.

Conclusion. The student employee leaders in this study reported that their relationships with supervisors and students contributed to their decision to remain at the institution. The students interviewed in this study also felt that what they learned in their place of employment could have longer implications in applying what they are learning to their future careers.

Recommendations. It is essential for student employees on campus to gain valuable experiences while working during college to engage and develop students to prepare for the future. Universities should emphasize for students to work on campus to help them build transferable skills and engage students in meaningful work to make the best of their time while in college.

Tillotson, Kenyon. "An Exploratory Study of Factors Eliciting VA Employee No-Show Behavior In Veterans Affairs Employee Development Courses." Scholar Commons, 2016. http://scholarcommons.usf.edu/etd/6417.

Hundley, Katrina M. "A Profile of Current Employee Training Practices in Selected Businesses and Industries in Southwest Virginia." Diss., Virginia Tech, 2003. http://hdl.handle.net/10919/28542.

Mitchell, Debora R. D. "The effects of assessment center feedback on employee development." Diss., Georgia Institute of Technology, 1997. http://hdl.handle.net/1853/29848.

Almeida, Rita Loução de. "How training evaluation can be used to potentiate employee development in an organization." Master's thesis, NSBE - UNL, 2014. http://hdl.handle.net/10362/11829.

Teffu, Matome Edward. "Aligning employee training needs and workplace skills plan in the Limpopo Department of Health." Thesis, University of Limpopo, 2014. http://hdl.handle.net/10386/1404.

Dressler, Jacqueline Faith. "Factors which influence employee participation in training and development : a study of clerical staff at McGill University." Thesis, McGill University, 1994. http://digitool.Library.McGill.CA:80/R/?func=dbin-jump-full&object_id=22582.

Cole, Jennifer Elizabeth. "Skills development training and its impact on employee self-image : a case study of employee responses to training in the wholesale and retail sector in the Western Cape." Master's thesis, University of Cape Town, 2006. http://hdl.handle.net/11427/8211.

Hobson, Nicole DeJarnett. "Succession Planning and Situational Engagement." Thesis, University of North Texas, 2007. https://digital.library.unt.edu/ark:/67531/metadc5168/.

Tengberg, Fredrika, and Stefanie Forsman. "Effektiv kompetensutveckling : En undersökning av hur olika perspektiv på lärande påverkar effekterna av kompetensutveckling under Training Days." Thesis, Högskolan Väst, Avd för företagsekonomi, 2014. http://urn.kb.se/resolve?urn=urn:nbn:se:hv:diva-6746.

Shah, Naimatullah. "Determinants of employee readiness for organisational change." Thesis, Brunel University, 2009. http://bura.brunel.ac.uk/handle/2438/4460.

Hiraoka, Calvin H. Wircenski Jerry L. "Influence of pre- and post testing on return on investment calculations in training and development." [Denton, Tex.] : University of North Texas, 2008. http://digital.library.unt.edu/permalink/meta-dc-6097.

Bernard, Kevin Lance. "Strategies to Reduce Voluntary Employee Turnover in Business Organizations." ScholarWorks, 2018. https://scholarworks.waldenu.edu/dissertations/5163.

Pierce, Heather R. "Employee development as an exchange process : perceived organizational support, leader-member exchange and perception of benefit." Diss., Georgia Institute of Technology, 2001. http://hdl.handle.net/1853/29897.

Kane-Sellers, Marjorie Laura. "Predictive models of employee voluntary turnover in a North American professional sales force using data-mining analysis." [College Station, Tex. : Texas A&M University, 2007. http://hdl.handle.net/1969.1/ETD-TAMU-1486.

Menze, Menyezwa Nozizwe Mandu. "The impact of stress on productivity of employees at the Education Training and Development practices Sector Education and Training Authority /." Diss., Pretoria: [s.n.], 2006. http://upetd.up.ac.za/thesis/available/etd-04262007-161101.

Jensen, Vicki J. "Analysis of the capabilities for development of employee extrusion technology training programs within the El Paso, Texas area." Online version, 2008. http://www.uwstout.edu/lib/thesis/2008/2008jensenv.pdf.

Panagiotakopoulos, Antonios. "An empirical investigation of employee training and development in Greek manufacturing small and medium-sized enterprises (SMEs)." Thesis, University of Leeds, 2009. http://etheses.whiterose.ac.uk/1565/.

Makoni, Eric. "Employee Engagement Strategies That Healthcare Managers Use to Increase Organizational Performance." ScholarWorks, 2019. https://scholarworks.waldenu.edu/dissertations/6730.

Cooper, Jean Henry. "A training programme based on the principles of social constructivism and focused on developing people for the future world of work an evaluation /." Diss., Pretoria : [s.n.], 2005. http://upetd.up.ac.za/thesis/available/etd-03162005-142319.

Hoepner, Terri Jo. "Marketing training and development activities in Chippewa Valley businesses." Online version, 2003. http://www.uwstout.edu/lib/thesis/2003/2003hoepnert.pdf.

Dowler, Alan Reginald. "A consideration of the effectiveness and efficiency of employee training and development in a range of commercial organisations." Thesis, University of Birmingham, 1995. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.324172.

Barcus, Sydney Anne. "The impact of organizational learning and training on multiple job satisfaction factors." Thesis, University of North Texas, 2007. https://digital.library.unt.edu/ark:/67531/metadc5202/.

Warman, Mendy L. "A center for training and development." CSUSB ScholarWorks, 1995. https://scholarworks.lib.csusb.edu/etd-project/1077.

Rejdová, Nela. "VZDĚLÁVÁNÍ A ROZVOJ ZAMĚSTNANCŮ." Master's thesis, Vysoká škola ekonomická v Praze, 2014. http://www.nusl.cz/ntk/nusl-205130.

Nhlapo, Tsholo Mzawazi Solomon. "The implementation of human resource development strategy for total quality management within the Department of Correctional Services : focus on Groenpunt management area / Tsholo Mzawazi Solomon Nhlapo." Thesis, North-West University, 2010. http://hdl.handle.net/10394/4831.

Paek, Jeeyon. "A study of training program characteristics and training effectiveness among organizations receiving services from external training providers." Connect to this title online, 2005. http://rave.ohiolink.edu/etdc/view?acc%5Fnum=osu1118351733.

Kunder, Linda Holder. "Employees' Perceptions of the Status and Effectiveness of the Training and Development System and of the Value of Training and Development." Diss., Virginia Tech, 1998. http://hdl.handle.net/10919/30411.

Vanterpool, Maureen Olivia. "Concerns of training managers about the competency standards prescribed by the American Society for Training and Development /." The Ohio State University, 1987. http://rave.ohiolink.edu/etdc/view?acc_num=osu1487330761216806.

Al, Majdalawi Mazen. "Human resource development in Palestinian higher education, with special reference to evaluation of employee development and training at the Al-Aqsa University, Gaza, Palestinian Authority." Thesis, University of South Wales, 2015. https://pure.southwales.ac.uk/en/studentthesis/human-resource-development-in-palestinian-higher-education-with-special-reference-to-evaluation-of-employee-development-and-training-at-the-alaqsa-university-gaza-palestinian-authority(be3c766a-50f7-44c4-8775-6394a7a6f0bd).html.

Tronnier, Julia K. "Development of a valid level one evaluation instrument for ABC Company's Lean Training Program." Online version, 2009. http://www.uwstout.edu/lib/thesis/2009/2009tronnierj.pdf.

Ntlonze, Chapman Mphuthumi. "Project management training for community development." Thesis, Stellenbosch : Stellenbosch University, 2001. http://hdl.handle.net/10019.1/52418.

Hiraoka, Calvin H. "Influence of pre and post testing on return on investment calculations in training and development." Thesis, University of North Texas, 2008. https://digital.library.unt.edu/ark:/67531/metadc6097/.

Knight, FRANCELIA Luis. "Strategies to Retain Employees in the Health Care Industry." ScholarWorks, 2018. https://scholarworks.waldenu.edu/dissertations/5888.

Krantz, Michelle. "Diversity-Awareness Training Experiences of School of Education Employees." NSUWorks, 2012. http://nsuworks.nova.edu/fse_etd/51.

Van, Heerden Alan Joshua. "The development of a competency based model for training operators within the confectionery industry." Thesis, Port Elizabeth Technikon, 2002. http://hdl.handle.net/10948/83.

Gadu, Thandiswa Constance. "An evaluation of selected skills development programmes in the Amathole District Municipality." Thesis, Nelson Mandela Metropolitan University, 2014. http://hdl.handle.net/10948/d1020587.

Rach, Margaret M. (Margaret Mannion). "The Impact of EEO Legislation Upon Selection Procedures for Transfer, Training and Development and Promotion." Thesis, North Texas State University, 1985. https://digital.library.unt.edu/ark:/67531/metadc331995/.

Omar, Abduljabar A. "Perceptions of Role Conflict, Role Ambiguity, and Job Satisfaction among Selected Human Resource Development Practitioners." Thesis, University of North Texas, 1992. https://digital.library.unt.edu/ark:/67531/metadc278527/.

DeLozier, John. "Community College Grow Your Own Leadership: A Phenomenological Study of Employee Perceptions of Individual and Organizational Leadership Development." Digital Commons @ East Tennessee State University, 2019. https://dc.etsu.edu/etd/3623.

Alhassan, Joy Ukwo. "The relationship between employee perceptions of training, organisational commitment and their impact on turnover intentions: a survey of selected SMMEs in the Cape Metropole Area." Thesis, Cape Peninsula University of Technology, 2011. http://hdl.handle.net/20.500.11838/1728.

Ntlebi, Nontsikelelo. "Training and development in South African local government :the case of the Helderberg municipality." University of the Western Cape, 2003. http://etd.uwc.ac.za/index.php?module=etd&amp.

Hires, Teri Meadows. "An Analysis of the Utilization of Needs Assessments by Training and Development Professionals." Thesis, North Texas State University, 1987. https://digital.library.unt.edu/ark:/67531/metadc331728/.

Costs and benefits of a formal academic qualification beyond the PhD

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In many Western and Eastern European countries, the habilitation is the highest formal qualification awarded by universities, ranking above the doctorate. Despite its central role in the European higher education system, little is known about the career trajectories of those who have obtained this degree. This paper systematically analyzes the career trajectories of scientists and scholars who have completed a habilitation in Germany, comparing these to those of individuals who did not complete a further degree after their PhD. To do so, linked social insurance data from a period of 2 years prior to 15 years after receiving the doctorate are used. My analysis reveals the substantial monetary costs of pursuing an additional qualification after the PhD. The empirical findings indicate that the benefits of an additional qualification beyond the PhD are primarily non-monetary, for example having a cognitively demanding and challenging job requiring a high level of education, and an increased likelihood of employment within the academic sector. These findings may indicate that beyond a certain level of education, and with an already fairly strong integration into the labor market, non-financial aspects of work could become more significant to individuals than income maximization.

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Introduction

The habilitation is the highest-ranking academic qualification and exists in most Western European and some Eastern European countries (Rüegg, 2010 ). The habilitation process allows a scholar or scientist to demonstrate their abilities at an advanced level, particularly their research and teaching. In most countries, the habilitation is achieved through a lengthy academic qualification process, which culminates in the awarding of a formal degree. Due to the high demands of this qualification, the habilitation is considered a kind of “super-PhD” (Schulze, 2008 ). The requirements can vary considerably depending on the regional context, as well as the particular demands of a university or faculty. For example, to be awarded the habilitation in a STEM field in Italy (Abilitazione Scientifica Nazionale, ASN), candidates not only have their scientific CVs evaluated, but must also prove that they have more publications, more citations, and/or a higher h-index than the majority of associate or full professors at Italian universities (ASN n.d. ; see also Marini, 2017 ). In countries such as Germany, Austria, and Switzerland, as well as many Eastern European countries such as Russia, in order to qualify for habilitation, a researcher must typically have published an outstanding dissertation and a certain number of scholarly works, often in the form of journal articles or a monograph. They are often also required to give a lecture. As with the doctoral thesis, the habilitation thesis is evaluated by a committee (Frey et al., 2023 ). In this regard, the habilitation is symbolizing the end of the academic apprenticeship process (Musselin, 2005 ) and can provide a valuable signal of the applicant’s ability to pursue a career also in the private sector.

Despite the central role of the habilitation as a qualification in the European higher education system, and the decades long process before it is awarded, little is known about its costs and benefits, especially with regard to the career trajectories of successful candidates. Studies have predominantly examined the impact of the habilitation on securing permanent positions in academia and the likelihood of becoming a professor (see, e.g., Schlinghoff, 2002 ; Schulze et al., 2008 ; Jungbauer-Gans & Gross, 2013 ). However, the qualification process itself and the period directly afterwards remain under studied, as systematic analyses and cross-sectional studies on the career trajectories of individuals with habilitations during this period are largely absent.

In this paper, I use Germany as an empirical example to estimate the costs and benefits associated with an additional qualification after the PhD, Footnote 1 especially prior to receiving a professorship. The career trajectories of individuals with habilitations are compared to those who have a doctorate as their highest degree. Basing my findings on linked social insurance data, I consider the individual career paths of eleven different graduation cohorts over a period of 18 years. This captures the most active time in many individuals’ careers; from their late twenties to mid-forties. In addition to hard economic labor market indicators such as income, I also consider non-monetary employment benefits in the academic sector. These include having the kind of cognitively demanding and stimulating workload that requires a high level of education, as well as the likelihood of holding a full-time position or becoming unemployed.

My analysis provides relevant insights into the costs and benefits of pursuing a further formal qualification after the doctorate. Notably, I find substantial monetary costs in terms of the high opportunity costs of foregone earnings. These arise both during the habilitation phase as well as in the period immediately afterwards. Overall, individuals pursuing a habilitation earn significantly less during the qualification phase than those whose highest degree is the doctorate. The empirical findings suggest that the positive relationship between length of education and income, as described by Mincer ( 1974 ), does not hold for these highest academic degrees, even though individuals with an additional academic qualification after the PhD are largely well integrated into the labor market. The data suggest that the benefits of an additional academic qualification lie more in the non-monetary rewards, such as having interesting and cognitively demanding work that requires a high level of education, as well as the higher likelihood of employment within the academic sector. Results remain stable when controlling for selection effects toward the habilitation. These findings may indicate that beyond a certain level of education, and with an already fairly strong integration into the labor market, the non-financial aspects of work may become more important to the individual than income maximization.

The paper is structured as follows: “ Habilitation and labor market outcomes ” section describes the prerequisites for habilitation and the associated requirements of the German system. This section is particularly helpful in contextualizing my results on the costs and benefits of a formal qualification beyond the PhD in different national backgrounds. “ Habilitation and labor market outcomes ” section also provides insights into the possible career paths, goals, and outcomes that exist within higher education. These indicators for career outcomes form the basis for further empirical investigation. “ Data and Methodology ” section introduces the data and methodology used. “ Empirical findings ” section compares the labor market trajectories of individuals with the habilitation as their highest degree to those of individuals with a doctorate as their highest degree. Unlike other studies, my analysis includes both the academic and non-academic labor markets to provide a comprehensive picture of potential qualification outcomes. This is particularly necessary as significantly more academics are trained than can remain in long-term employment at universities (cf. Andalib et al., 2018 ; Cyranoski et al., 2011 ). “ Discussion and conclusion ” section discusses the empirical findings and concludes.

Habilitation and labor market outcomes

The habilitation as an additional academic qualification in germany.

Until the beginning of the nineteenth century, the doctorate was the highest academic qualification, entitling its holders to ubique docent , i.e., to teach at all universities in the German Empire (Evers, 1982 ). However, the expansion of higher education and the increasing number of doctoral degree holders, particularly in medicine, necessitated the introduction of additional quality standards for teaching at universities (Evers, 1982 ; Roellecke, 1982 ). Consequently, after the founding of the University of Berlin (now Humboldt University of Berlin) in 1810, a further examination, the habilitation, was soon introduced, becoming a requirement for the profession of university lecturer (Busch, 1959 ; Evers, 1982 ). Footnote 2 Since then, the requirements for the habilitation have undergone continuous change. While the examination was less formal in the first half of the nineteenth century, consisting of just a lecture (Paletschek, 2004 ), the demands quickly increased over time. By the mid-nineteenth century, it became established that in addition to a lecture, a habilitation thesis also had to be written (Tenorth & McClelland, 2012 ).

Essential requirements for the habilitation in Germany today include writing an extensive habilitation thesis, which in disciplines like history is often expected to differ thematically from the doctoral thesis (Laudel, 2017 ). Additionally, teaching experience and pedagogical skills are also required, and are typically demonstrated through an individual’s teaching performance and the submission of a teaching sample. An oral examination also takes place before a habilitation committee. Due to the high demands placed on candidates, the habilitation is regarded as the “maximum scientific achievement” (Evers, 1982 ), or a kind of “super-PhD” (Schulze, 2008 ).

The award of the habilitation therefore signifies the end of the academic apprenticeship process (Musselin, 2005 ) and is a crucial part of the transformation from student into accepted colleague described by Laudel and Gläser ( 2008 ). It also aids in the development of an independent research program (cf. Laudel & Bielick, 2018 ) and establishes holders as independent researchers. In Germany, the habilitation is associated with numerous rights and obligations, and certifies the ability to teach ( Facultas Docendi ). Furthermore, it also often grants teaching authorization ( Venia Legendi ) in the specific subject area in which the habilitation was completed. This authorization includes the right to use the title Privatdozent (PD), which allows graduates to conduct lectures at their degree-granting university, using the technical facilities and other resources necessary. Subject to availability, the status of Privatdozent also permits access to research facilities, such as laboratories, and the appointment to committees that oversee doctoral and habilitation procedures (Evers, 1982 ; Roellecke, 1982 ).

In the last decades of the twentieth century, the habilitation was de facto a prerequisite for professorships at universities in Germany, although occasionally individuals without a habilitation were appointed (Roellecke, 1982 ; Vom Bruch, 2000 ; Berning & Küpper, 2001 ; Schulze, 2008 ). This changed in 2002, with the amendment of the Hochschulrahmengesetz (HRG), which legally regulates the requirements for professorships in Germany. The amendment specified that the habilitation was no longer the sole qualification necessary for university professors, and the law now also includes “additional scientific achievements” that can be demonstrated by leading a junior research group, holding a junior professorship, or publishing works equivalent to a habilitation. Nevertheless, the habilitation still holds considerable prestige and in many disciplines members of appointment committees implicitly regard the habilitation as a necessary qualification (Ellenbürger, 2020 ). It is therefore not surprising that even in 2021, the habilitation remained the most common prerequisite for initial permanent professorship appointments (Destatis, 2022 ).

Neither the title Privatdozent nor the habilitation itself is directly linked to a specific employment position at a university (Busch, 1959 ; Joseph, 1971 ; Musselin, 2004 ; Klecha & Krumbein, 2009 ; Teichler, 2016 ; Lörz & Mühleck, 2019 ). Teaching as a Privatdozent is generally unpaid, and the value of the habilitation in the academic job market primarily lies in its role as one of the necessary conditions for a later professorship, as well as its crucial function in signaling an independent research agenda. Given the great importance of the habilitation as a qualification for academic careers, most research on this topic focuses on the probability of holders being appointed to a professorship (see Schlinghoff, 2002 ; Schulze et al., 2008 ; Jungbauer-Gans & Gross, 2013 ). The probability of a first appointment is highest immediately after the habilitation is completed, with most initial appointments occurring within the first few years post-graduation (Jungbauer-Gans & Gross, 2013 ; Plümper & Schimmelfennig, 2007 ; Schulze et al., 2008 ).

However, there has never been a guarantee that individuals with the habilitation will be appointed to a professorship (cf. Eulenburg, 1908 ; Weber, 1919 ). One reason for this is that there is no connection between the academic demand for individuals with habilitations and the number of individuals completing a habilitation (Tenorth & McClelland, 2012 ). Estimates suggest that the current ratio of individuals becoming qualified for professorships each year, through either the habilitation or via a junior professorship or junior research group leader role, to open positions is approximately 3 to 1 (Burkhardt, 2014 ).

Concurrently, it is important to note that the benefits of the habilitation and the title of Privatdozent can extend beyond an academic career. Depending on the field, a habilitation can significantly enhance an individual’s career prospects outside of academia. For example, in medicine, the habilitation and the role of Privatdozent are often prerequisites for senior clinical positions, such as that of chief physician (Kreckel & Zimmermann, 2014 ; Sorg et al., 2016 ). Anecdotal evidence also suggests that in fields like consulting, the pharmaceutical industry, and the education sector, the habilitation signals expertise and solid knowledge, and therefore can promote career advancement within the private sector.

Costs and benefits of an additional academic qualification

Given the variety of possible career paths, it is essential to analyze different career outcomes both during the qualification phase for the habilitation as well as after attaining the qualification. One of the most frequently considered career benefits of further education and academic qualifications is income. Consequently, the relationship between formal education and income has been extensively analyzed in numerous studies (Ashenfelter & Rouse, 1998 ; Isacsson, 1999 ; Mincer, 1974 ; Mulvey et al., 1995 ). This research encompasses both school education and initial university degrees and shows that in most fields the salaries of PhD holder are significantly higher than those of graduates with a master’s degree or equivalent (König et al., 2021 ). Regarding qualifications beyond the doctorate, previous research has largely focused on the duration of qualifications (e.g., postdoc phases) rather than the attainment of an additional formal qualification (see, e.g., Recotillet, 2007 ; Kahn & Ginther, 2017 ; König, 2022 ). Importantly, König ( 2022 ) shows that qualification periods in academia are not recognized from financial perspective by non-academic employers when PhD holder leave academia. Furthermore, long academic qualification periods are often linked to opportunity costs in the form of potential earnings losses.

In addition to income, general working conditions can also be a relevant career indicator. In recent decades, working conditions in academia have come under increasing scrutiny (cf. Bahr et al., 2022 ), particularly working hours and job security. Researchers at universities are often employed part-time, but are required to work significantly more hours than agreed upon in order to fulfill their duties (BuWiN, 2021 ). The high demands of the habilitation thesis may also force academics into working part-time so that they can allocate sufficient time to their own qualification work (Laudel, 2017 ). Moreover, employment as a researcher is perceived as insecure and it is often subject to third-party funding logics, with employment being linked to specific projects and their durations. Consequently, once a research project ends there is a specific risk of unemployment.

Aside from financial ambitions and employment stability, higher educational qualifications can also impact non-monetary goals. Employment in the academic sector is an important career aspiration (Briedis et al., 2014 ), as this is where academic freedom and independence are seen to be highly valued (cf. Eulenburg, 1908 ). However, this goal remains unattainable for many doctorate and habilitation holders in the long run. Internationally, far more individuals receive a doctorate than the academic job market can absorb (Andalib et al., 2018 ; Cyranoski et al., 2011 ), and in Germany the number of individuals with a habilitation regularly exceeds the number of first-time professorial appointments available (Burkhardt, 2014 ; Klecha & Krumbein, 2009 ; BuWiN, 2017 ). This forces many individuals who initially aspired to an academic career to leave academia.

Non-monetary returns on education and additional qualifications such as the habilitation may also include the opportunity to engage in unique professions and challenging activities. Researchers often value interesting work tasks and the intellectual challenge of problem solving over the purely monetary benefits of employment (Stern, 2004 ). Scientists with a higher preference for non-monetary returns are more likely to integrate into the university system (Agarwal & Ohyama, 2013 ) where postdoc phases can positively influence the probability of a tenure-track position (Wang & Main, 2021 ; Yang & Webber, 2015 ). On the other hand, a preference for economic activities (Balsmeier & Pellens, 2014 ) and a “taste” for commercialization increases the likelihood of an individual leaving academia (Hottenrott & Lawson, 2017 ; Sauermann & Roach, 2012 ).

In summary, while the habilitation remains a crucial qualification in Germany, potential qualification outcomes can be diverse and are influenced by a mix of monetary and non-monetary costs and benefits. The following empirical section will provide a better understanding of the career trajectories of individuals with habilitations, including those pursuing various career paths both within and outside of academia, offering a comprehensive understanding of the long-term benefits and costs of this advanced qualification.

Data and methodology

The iab incher panel on earned doctorates.

The costs and benefits of the habilitation are empirically analyzed by examining the career paths of individuals for whom the habilitation is the highest qualification compared to those for whom the doctorate is the highest formal degree. The quantitative analysis is based on the IIPED dataset (IAB INCHER Panel on Earned Doctorates), initially presented in Heinisch et al. ( 2020 ) and since updated to 2021. The IIPED has been utilized for various analyses in the fields of labor market and occupational research (see, e.g., Koenig et al., 2021 ; Buenstorf et al., 2023 , 2024 ; Rehs and Fuchs 2023 ). Using machine learning methods, PhD holder listed in the catalog of the German National Library was linked with the Integrated Employment Biographies (IEB) dataset from the Institute for Employment Research (IAB). The IEB dataset, which is based on social security data, includes information on individual employment periods, as well as sociodemographic characteristics such as gender and age. It covers about 80% of the German workforce, including those who are unemployed and job-seeking. Footnote 3 Details about habilitations in Germany are published in the Habilitation Register of German Universities, Footnote 4 which integrates various secondary data on the qualification. This register contains the most comprehensive list of habilitations completed at German universities since the 1980s (cf. Bode & Bünstorf,  2021 ; Theissen et al., 2023 ).

The analysis includes all PhD holder listed in the IIPED who completed their degrees between 1995 and 2006. Since the IIPED contains information up to 2021, it is possible to explore the career trajectories of graduating cohorts up to 15 years after they received their doctorate. To enhance the comparability of the analysis between individuals with the habilitation as their highest degree and those with only a doctorate, data are restricted to individuals who were employed in academia (at a university or a non-university public research institution) in the year when they completed their doctorate. The career trajectories of these individuals are analyzed from 2 years before receiving the doctorate to 15 years afterwards. For individuals with a habilitation, this period includes the time spent completing the habilitation (which usually begins shortly after receiving the doctorate and lasts up to 10 years), as well as the years after receiving the habilitation.

The analysis includes graduates from all major subject groups. However, to allow for sufficient case numbers, subsample analysis is only presented for Engineering, Medicine, Natural Science/Mathematics, Social Science and Humanities/Arts. To obtain a comprehensive overview of individuals’ employment situations before and after the habilitation, and thus gain an insight into the costs and benefits of this qualification, the following variables are considered.

Full-time employment

The IIPED dataset captures various types of employment status. The most common employment status after completing a doctorate is full-time employment. I use a dummy variable that takes the value 1 if the person is in full-time employment, and 0 if they are working part-time, in a mini-job or are unemployed.

Unemployment

This variable takes the value 1 if the person is reported as unemployed in the IIPED dataset and 0 if individual is in employment.

In Germany, salaries are only recorded in the IIPED data up to the contribution ceiling for social insurance. For example, in 2021, this ceiling was €7100 per month in West Germany and €6700 per month in East Germany. A dummy variable indicates whether a person has a salary above the contribution assessment ceiling. Footnote 5 With an income above this value, individuals belong to the high-income group in Germany. Due to a lack of information regarding working hours, this analysis is only conducted for full-time employees.

The variables for full-time employment, unemployment, and income provide an insight into general working conditions and job security. More specifically, they provide an indication of individuals’ working conditions during their additional qualification phase while writing the habilitation thesis and in the years after its defense. In addition to these variables, the indicators described below provide further information about the specific job profiles of individuals who attained a habilitation.

Academic sector

This variable takes the value 1 if the person is employed at a university or non-university research institution, and 0 if they are employed in another sector, for example in private industry or the public sector. This variable provides information on whether, and for how long, scientists and scholars with habilitations and doctorates remain in the academic sector.

Expert position

In the IIPED dataset, occupations are classified into four skill levels based on the competencies and education needed for these jobs. Expert tasks are the highest level and require at least 4 years of higher education with a corresponding degree. A doctorate may also be required to fulfill these job tasks. For the analysis, I use an indicator variable that takes the value 1 if the person is in a job with expert tasks. All other categories are combined to form the reference group. The variable provides information on the extent to which scientists and scholars are engaged in cognitively demanding and challenging tasks that require a high level of formal education.

Methodology

Using these five labor market indicators, I aim to provide a comprehensive overview of the monetary and non-monetary costs and benefits associated with a habilitation as the highest formal academic qualification beyond the PhD.

The main explanatory variable is an interaction term between the years before and after receiving the doctorate and a dummy variable that takes the value 1 if a person later completed a habilitation. The year in which the doctorate is awarded forms the starting point for analyzing the career paths of individuals who go on to complete the habilitation. This allows for a comparison of their career paths with those whose highest degree remains the doctorate. Even if the differences in career paths due to self-selection to habilitation are not considered causal, this approach still allows for valuable insights into the costs and benefits of habilitation over the 18 years that form a major part of individuals’ career trajectories. Logistic regressions control for gender, nationality, vocational training, age group, graduation cohort, and university fixed effects. Footnote 6 The estimated margins of the interaction between the years before and after the doctorate and the highest qualification achieved are plotted.

Since differences in careers could arise from self-selection into an academic career, a treatment effect model is also estimated. A propensity score matching approach is used to control for self-selection into habilitation. The similarity between those whose highest degree is a doctorate and those whose highest degree is the habilitation is based on estimated probabilities of later completing a habilitation. The effect of the habilitation on career trajectories is calculated by computing the average difference between observed and potential outcomes for those with and without habilitations, thus controlling for selection effects toward habilitation. In addition to the previously mentioned variables, weighted field-specific early productivity is included when calculating the propensity score. Since publications in most disciplines undergo a review process lasting several years, all publications up to 1 year after graduation are included, as they are likely based on work during the doctoral period and are not reflective of an already established academic career. Scopus data are provided by Kompetenznetzwerk Bibliometrie. The publication variable indicates whether the field-specific productivity weighted by co-author lies in the upper quantile, lower quantile, or middle quantile. Due to data restrictions, this variable is only available for PhD holder and individuals with a habilitation from 2000 onwards, limiting this specific analysis to the post-2000 period. Table 2 in the Appendix presents the summary statistics.

Empirical findings

Figure  1 illustrates the career trajectories of individuals who have completed a habilitation compared to those whose highest degree is a doctorate by plotting predictive margins and average marginal effects. A comparison of both groups provides an initial insight into the costs and benefits of the habilitation as the highest academic qualification. Logistic regressions corresponding to the presented figures can be found in the Appendix, in Tables 3 to 7 .

Career outcomes of doctorate and habilitation holders before and after graduation, all subjects. Note: Author’s calculation. Lines with triangles represent predictive margins for individuals with a doctorate as their highest degree. Lines with squares represent predictive margins of individuals with the habilitation as their highest degree (left side). Lines with dots represent the average marginal effects of a habilitation with 95% confidence intervals (right side)

In terms of the probability of being in full-time employment, there are only minimal differences between those with a doctorate as their highest degree and those with a habilitation. For both groups, the likelihood of full-time employment increases substantially after completing the doctorate, from around 40% to over 90% in the subsequent years. It is worth noting that those who went on to complete the habilitation have a higher likelihood of full-time employment during their doctorate, whereas those with a doctorate as their highest degree have a slightly lower proportion of full-time employment during their doctoral studies. However, this pattern reverses in the following years, although the differences in full-time employment for most post-doctorate years are rarely significant. There are also very few differences in terms of unemployment. Overall, low unemployment rates are observed for those who go on to complete the habilitation and those with a doctorate as their highest degree. The likelihood of unemployment after graduation remains consistently around 2%, indicating full employment for both groups. A notable exception is a brief increase in the likelihood of unemployment to over 8% in the year of doctoral graduation for those who do not later complete a habilitation. In contrast, there is no comparable increase observed for those who do later attain a habilitation. Footnote 7 Overall, the relatively low likelihood of being unemployed and the high likelihood of full-time employment indicate good integration into the labor market for those who complete the habilitation, both during the qualification process and beyond, as well as for individuals with the doctorate as their highest degree.

Regarding income, both PhD holders and those who later in addition complete a habilitation experience a dynamic increase in the likelihood of receiving a high income over time. Notably, the likelihood of receiving a high income increases for those with a doctorate as their highest degree more dynamically in the first years post-graduation. Four years after receiving the doctorate, those who go on to receive the habilitation have an up to 20-percentage point lower probability of attaining a high income. These differences, favoring individuals with just a doctorate, persist up to 15 years post-doctorate, although the gap in the predictive margins of achieving a high income between the two groups begins to narrow slightly from the fifth year post-doctorate. This more dynamic increase in income for individuals without the habilitation after obtaining their doctorate suggests that, besides a generally good integration into the labor market, the habilitation is associated with some opportunity costs. These particularly occur during the additional qualification phase, but also exist in subsequent years.

Besides income, long-term employment in the academic sector is a goal of many PhD holders. Marked differences are observed regarding the sectors where doctoral graduates are employed. Unsurprisingly, many PhD holder who do not pursue a habilitation leave the academic sector post-graduation, with only about 40% of them remaining in university positions 2 years after receiving their doctorate. Conversely, those who go on to achieve the habilitation tend to stay in academia, with their likelihood of holding an academic position only slightly decreasing over time: the likelihood of working in the academic sector remains just under 60% even 15 years post-habilitation. In contrast, by far the largest majority of those with only a doctorate are working outside the academic sector at this time.

Relatedly, those who complete the habilitation have a significantly greater likelihood of achieving an expert job position, which is one that places high demands on the individual’s knowledge and skills in order to carry out their professional activity. For those who subsequently achieve a habilitation, the likelihood of having an expert position in the year of doctoral graduation is between 80 and 85%, rising to over 90% 15 years post-doctorate. In contrast, for those whose highest degree is a doctorate, this proportion decreases sharply after graduation. It is evident that during their PhD many individuals are employed at universities or in non-university research institutions, both of which require an extensive university education. However, after receiving their doctorate these individuals often transition into professional positions that do not necessarily require a university degree. For example, an evaluation of chosen occupations in the IIPED indicates that post-graduation historians with doctorates may frequently find themselves working as office clerks.

In Figs.  2 , 3 , 4 , 5 , and 6 , further insights are provided by subject-specific analyses. This analysis demonstrates how strongly the costs and benefits of an additional academic qualification after a doctorate depend on the specific subject of study.

Career outcomes of doctorate and habilitation holders before and after graduation, Humanities/Arts. Note: Author’s calculation. Lines with triangles represent predictive margins for individuals with a doctorate as their highest degree. Lines with squares represent predictive margins of individuals with the habilitation as highest degree (left side). Lines with dots represent the average marginal effects of a habilitation with 95% confidence intervals (right side)

Career outcomes of doctorate and habilitation holders before and after graduation, Social Science. Note: Author’s calculation. Lines with triangles represent predictive margins for individuals with a doctorate as their highest degree. Lines with squares represent predictive margins of individuals with the habilitation as their highest degree (left side). Lines with dots represent the average marginal effects of a habilitation with 95% confidence intervals (right side)

Career outcomes of doctorate and habilitation holders before and after graduation, Natural Science/Mathematics. Note: Author’s calculation. Lines with triangles represent predictive margins for individuals with a doctorate as their highest degree. Lines with squares represent predictive margins of individuals with the habilitation as their highest degree (left side). Lines with dots represent the average marginal effects of a habilitation with 95% confidence intervals (right side)

Career outcomes of doctorate and habilitation holders before and after graduation, Medicine. Note: Author’s calculation. Lines with triangles represent predictive margins for individuals with a doctorate as their highest degree. Lines with squares represent predictive margins of individuals with the habilitation as their highest degree (left side). Lines with dots represent the average marginal effects of a habilitation with 95% confidence intervals (right side)

Career outcomes of doctorate and habilitation holders before and after graduation, Engineering. Note: Author’s calculation. Lines with triangles represent predictive margins for individuals with a doctorate as their highest degree. Lines with squares represent predictive margins of individuals with the habilitation as their highest degree (left side). Lines with dots represent the average marginal effects of a habilitation with 95% confidence intervals (right side)

Similar patterns to those described above for all subjects are observed across different disciplines. However, there are two notable exceptions:

Firstly, for graduates in the Humanities/Arts, there are only minimal differences in income between those who pursue habilitation and those for whom a doctorate is the highest degree. Interestingly, this is not due to particularly high earnings among those who achieve the habilitation, but rather because graduates in these fields overall have the lowest probability of earning a high income, especially in the years immediately following the doctorate. Additionally, they have the highest unemployment rate of all disciplines, indicating a comparatively poor labor market integration regardless of whether an additional qualification beyond the doctorate is pursued.

In contrast, for those graduating in medicine, the habilitation appears to have a particularly positive impact on career trajectories. Although individuals pursuing habilitation initially face income losses compared to those whose highest degree is a doctorate, these losses are relatively minor compared to other disciplines. Notably, around 8 years post-doctorate, this trend reverses, with the probability of high salaries for medical professionals with a habilitation consistently exceeding those of their peers with only a doctorate. This may suggest that the additional academic qualification can be particularly income enhancing in the field of medicine.

Results from analyses based on propensity score matching can be found in Table  1 . This method controls for selection into habilitation based on observable characteristics, considering career outcomes 5, 10, and 15 years post-doctorate. Since individuals in the database typically achieve habilitation up to 10 years post-doctorate, the 5-year post-doctorate period is when many are still in the habilitation qualification process. By the tenth year post-doctorate, individuals are often at the end of this additional academic qualification period, while 15 years after receiving a doctorate many will have already obtained the habilitation.

Many of the differences observed previously remain in the treatment effect analyses. Compared to those whose highest qualification is the doctorate, the probability of having an expert position for individuals who complete a habilitation is increased by 11 percentage points 5 years post-doctorate and 15 percentage points 10 and 15 years post-doctorate. Furthermore, the probability of being employed in the academic sector for individuals who completed the habilitation exceeds the probability of those with only a doctoral degree for 5, 10, and 15 years post-graduation. However, it is also apparent that the cost of a further academic qualification post-doctorate is a substantial reduction in the probability of receiving a high salary. Interestingly, the reduction in salary is especially pronounced 5 years after doctoral graduation, while differences between individuals with a habilitation and those with a doctoral degree only decrease in years ten and fifteen post-graduation. In year fifteen after doctoral graduation, individuals with a habilitation only have a 9-percentage point lower probability of receiving a high income. In keeping with previous findings, only marginal differences can be observed in the probability of being in a full-time position or being unemployed.

Discussion and conclusion

In many European countries, the habilitation is the highest qualification awarded by universities. Despite its central importance in most European higher education systems, little is known about the career trajectories of those who achieve a habilitation as their highest qualification. In this study, Germany is used as an empirical example to investigate the costs and benefits of achieving a formal academic qualification beyond the PhD. By linking information on recipients of doctorates and habilitations with their social security data, I analyzed the career paths of those with a habilitation as their highest academic degree in comparison to those whose highest qualification is a doctorate. The analysis allowed me to capture, for a period of 18 years, the differences in career trajectories of individuals with a habilitation and those with a doctorate as their highest qualification. This time span captures an important part of an individual’s professional life, from their late-twenties to mid-forties. Supplemented by literature on the topic of habilitation presented in “ Habilitation and labor market outcomes ” section, my analysis allows conclusions to be drawn on the costs and benefits of an additional academic qualification beyond the PhD.

The empirical findings suggest that individuals with an additional academic qualification after the PhD are well integrated into the labor market, both during and after their additional qualification phase. They also have a high likelihood of obtaining full-time employment and a low likelihood of unemployment. These outcomes differ only slightly from individuals who have a doctorate as their highest qualification.

At the same time, the empirical findings indicate that substantial opportunity costs are incurred during the additional qualification phase. In particular, during the qualification phase, those who pursue the habilitation have a substantially lower probability of earning a high income compared to those for whom the PhD is their highest degree. These differences are long term, and remain significant even when controlling for selection effects towards an additional academic qualification. An exception seems to be only the field of medicine where significant income increases are observed following the completion of this additional qualification.

The empirical analysis simultaneously indicates that the benefits of an additional formal academic qualification after the PhD extend beyond the financial. Habilitation candidates have a substantially increased likelihood of holding positions in the academic sector. Furthermore, they are more likely to occupy expert positions, which are those that require a high level of formal education to fulfill complex work tasks. Probabilities for both employment indicators remain significantly higher in the long term, even after the additional qualification phase has been completed. Additionally, the literature suggests that completing a further formal qualification after the PhD plays an important role within academia, functioning to highlight one’s research program and establish oneself as an independent researcher. With the habilitation, academics at universities transition from students to colleagues (cf. Laudel & Gläser, 2008 ) and that, e.g., in the field of medicine, the habilitation is often an implicit requirement for becoming a clinic’s chief physician (see Kreckel & Zimmermann, 2014 ; Sorg et al., 2016 ).

Overall, the results suggest that the benefit of an additional formal qualification after the PhD lies in a higher likelihood of employment in the academic sector, along with the associated academic freedom and the privilege of having challenging and interesting work tasks. This benefit comes at the cost of a comparatively lower income. Summing up these findings may indicate that beyond a certain level of education, and already fairly strong integration into the labor market, non-financial aspects of work could become more significant to an individual than income maximization.

These results are particularly important for individuals contemplating further academic qualification after completing their PhD. The empirical findings in this analysis strengthen the foundation for a thorough cost–benefit evaluation of additional extensive academic qualification periods. Moreover, the findings are also relevant from a science policy standpoint, as they offer valuable insights into the labor market integration of individuals with the highest possible formal qualification.

Before concluding, it is necessary to address the limitations of this study. One constraint in analyzing the additional benefits of a further academic qualification beyond the PhD is the focus on Germany and the subsequent question of the generalizability of the results. Drawing universally applicable conclusions is complicated by the fact that habilitation regulations differ not only internationally, but often also within individual states, universities, and even between academic disciplines, and are subject to change over time. However, Germany remains one of the largest producers of PhD holder (OECD, 2018 ) and is an important job market for scientists and scholars, with numerous employment opportunities both within and outside of academia (König et al., 2021 ; Buenstorf et al., 2023 ). Additionally, core principles of the Humboldtian education ideal underpinning the habilitation, in particular regarding the integration of teaching and research, have also had a substantial influence on the development of higher education systems outside of Germany (cf. Rüegg, 2010 ). In this regard, the detailed description of the habilitation process in Germany in “ Habilitation and labor market outcomes ” section enables individual researchers to draw their own conclusions about how the results might apply to their national context, and what implications these findings may have (e.g., for their own career planning or science policy). Nevertheless, there remains a need for further research in this area, particularly regarding country-specific differences in the benefits of additional academic qualifications. Future research should incorporate various monetary and non-monetary career indicators to cover a range of possible career outcomes and preferences. As my analysis indicates, investigations that only consider earnings do not account for possible heterogeneity of preferences for career outcomes, and they may be misleading as career goals can vary significantly between individuals.

Data Availability

There are legal restrictions to sharing the used data publicly. The IIPED dataset used in the empirical analysis contains confidential information from social security records that are subject to strict data protection regulations. The authors are not authorised to fully disclose and share this data. The Habilitation Register of German Universities is accessible at https://doi.org/10.4232/1.13600 and https://doi.org/10.4232/1.14193 .

I use the term PhD as a general phrase for all doctoral degrees in Germany.

The concept of the research university, pursued by Humboldt with the founding of the University of Berlin, had a significant influence on other countries and their university systems. Aspects of Humboldt’s educational system, such as the unity of teaching and research, were highly influential, and the habilitation as the highest academic qualification after the PhD established itself beyond the German-speaking world. It was particularly prevalent in the countries of the former Austro-Hungarian Empire, but also in various other countries such as Russia. Today, the habilitation is the highest academic qualification granted in most Western European and some Eastern European countries, although its specifics and significance can vary considerably (cf. Rüegg, 2010 ).

Individuals who do not pay contributions to the regular German social security system are not included in my analysis. The most significant restriction for this study is that civil servants, including tenured professors, and the self-employed are excluded. Since the number of trained researchers far exceeds the number of open professorship positions (cf. Burkhardt, 2014 ; Klecha & Krumbein, 2009 ; BuWiN, 2017 ), the analysis should nevertheless include the majority of individual with habilitations. In Germany, the appointment to a tenured professorship often occurs when an individual is in their early forties, specifically at a median age of 43.2 years (BuWiN, 2021 ). This may lead to a slight underestimation of earnings but also of the likelihood of being employed in academia. This underestimation will start on average for individuals with a completed habilitation approximately 12 years after receiving the doctorate, which needs to be considered in order to interpret the results.

The Habilitation Register of German Universities is accessible at https://doi.org/10.4232/1.13600 and https://doi.org/10.4232/1.14193 .

This value was reduced by €2 due to rounding differences. Note that the findings are qualitatively similar when using tobit regression that estimates the daily inflation-adjusted income of individuals considering that the income variable is censored.

These variables were selected on the basis that they are responsible for differences in employment biographies, but are not simultaneously the result of selection towards a habilitation, as this would bias the analyses.

The increased likelihood of being unemployed for individuals without the habilitation in the year of completing their doctorate could be an indication that those who do not pursue an academic career have to reorient themselves shortly after graduation, which initially leads to a short period of job-seeking unemployment after their doctoral position ends. On the other hand, individuals who pursue an academic career and later complete the habilitation continue to be employed in academia without comparable frictions directly after their doctorate.

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Acknowledgements

I would like to extend my sincere gratitude to the International Center for Higher Educational Research. I am especially thankful to Maria Theissen for her dedicated work in data collection and to Alexandra Hertwig for her help with sourcing the literature. Any errors that remain are entirely my own.

Open Access funding enabled and organized by Projekt DEAL. Funding by Deutsche Forschungsgemeinschaft under grant BU 2454/8–1 (FOR 5234) is gratefully acknowledged. Use of publication data from Scopus was enabled by the German Competence Network for Bibliometrics funded by the Bundesministerium für Bildung und Forschung (BMBF) under grant number 16WIK2101A. The funders have no influence on the research design and results.

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Koenig, J. Costs and benefits of a formal academic qualification beyond the PhD. High Educ (2024). https://doi.org/10.1007/s10734-024-01338-3

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