This report describes Indiana's short-term credential landscape, which is characterized by strong central coordination and generous funding. Credit-bearing certificate attainment has grown substantially. More than 70 percent of certificate-earners earn other credentials ("stack"). Certificates boost earnings by an average of 20 percent, roughly $4,700 per year, but there is wide variation in returns by field and average earnings remain low.

Examining Short-Term Credentials and Student Outcomes in Indiana

Melanie A. Zaber, Brian Phillips, Lindsay Daugherty

ResearchPublished Jan 31, 2025

Cover: Examining Short-Term Credentials and Student Outcomes in Indiana
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Note: This report was revised on February 3, 2025, to correct the labels on the first two bars in Figure 3 on page 12.

Short-term credentials have been growing in prominence across the United States as a strategy for recognizing education and training between a high school diploma and a college degree. Indiana has made major investments to scale short-term credentialing and has engaged in statewide efforts to incentivize alignment across programs and education and training providers. From 2010 to 2021, the number of credit certificates earned by Hoosiers grew from 3,888 to 25,301. High school initiatives and the Indiana College Core (ICC, which facilitates credit transfer) contributed to this growth. More than 70 percent of Hoosiers earning a certificate continue on and earn a second credential ("stack") within a few years, and multiple credentials are often awarded simultaneously. The average certificate boosts earnings by 20 percent, roughly $4,700 per year, although earnings gains vary widely by certificate length and field. Despite these gains, overall earnings remain low, and there are earnings disparities by race and gender. Black certificate-earners are less likely to earn a second credential, and the overrepresentation of women in lower-earning fields contributes to gender differences in average earnings. This analysis was facilitated by Indiana's high-quality data on credit certificates, though gaps remain in noncredit credential tracking. The authors provide Indiana decisionmakers with evidence on the success of the state's vision for short-term credentialing and potential areas for further refinement.

Key Findings

  • Indiana's individual-level data on credential-earners are at least as good as other states’ data. In this report, we were able to extensively analyze credit certificates, but limitations of the skills training data precluded thorough analysis of these credentials.
  • The number of credit certificates earned by Hoosiers grew from 3,888 in 2010 to 25,301 in 2021. Growth spanned short-term credentials of different lengths and fields, and high school students contributed substantially to the growth.
  • The ICC, a certificate introduced in 2014 to facilitate transfer of general education coursework into degree programs, now accounts for nearly one-quarter of all certificates earned.
  • Within three years, more than 70 percent of credit certificate–earners stacked credentials (earned additional credentials). Multiple credentials were often awarded at the same time. Most credit certificate–earners who stacked credentials earned a degree and stacked within field.
  • Stacking rates varied across fields. Black certificate-earners were less likely to stack (even after accounting for field).
  • On average, credit certificate–earners saw a 20-percent increase in quarterly earnings (about $4,700 per year), although overall earnings remained low. Gains varied widely by certificate type, with health certificates and long-term certificates providing the largest percentage gains.
  • Indiana stakeholders supported the scaling of credentials with different levers: (1) establishing a clear vision, (2) providing funding, (3) requiring provider and program approval, (4) facilitating alignment across education and training systems, (5) supporting alignment of credentialing to industry, and (6) ensuring robust information on credentials and value.

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Zaber, Melanie A., Brian Phillips, and Lindsay Daugherty, Examining Short-Term Credentials and Student Outcomes in Indiana, RAND Corporation, RR-A3407-1, 2025. As of May 1, 2025: https://www.rand.org/pubs/research_reports/RRA3407-1.html

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Zaber, Melanie A., Brian Phillips, and Lindsay Daugherty, Examining Short-Term Credentials and Student Outcomes in Indiana. Santa Monica, CA: RAND Corporation, 2025. https://www.rand.org/pubs/research_reports/RRA3407-1.html.
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The research described in this report was sponsored by Ascend Indiana conducted by the RAND Lowy Family Middle-Class Pathways Center with RAND Education and Labor.

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