Cost-benefit analysis of the economic benefits of validation

The Budapest Institute, in a study commissioned by the Hungarian Educational Authority, presents the economic returns on validation of non-formal and informal learning through an entry-level IT job: the junior software tester position.

First, the paper identifies the concept of validation. Then, based on interviews and estimations, it discusses why it is important to pilot the process of validation in the IT sector and in an entry-level job.

Finally, our calculations show that the total cost of validation pays off many times over in as little as 3 years. There are significant yields for individuals, the state, and employers, as a validation certificate can help employees to move into a significantly better paid job that is more suited for their skills, through a shorter selection process.

The paper commissioned by the Hungarian Educational Authority was carried out by the Budapest Institute for Policy Analysis.