Examining the economic value of education has been a central research agenda of social scientists for decades. However, prior research inadequately accounts for the discrepancy between educational credentials and skills at both the individual and societal levels. In this article, I investigate the link between credentials, skills, and labor market outcomes against a background of societal-level educational expansion and skills diffusion. Using internationally comparable OECD data for approximately 30,000 individuals in 26 countries, I find that both credentials and skills generally contribute to occupational and monetary rewards. In particular, the premium for credentials far outweighs that for skills. This is in contrast to recent arguments that skills are the key to economic success. Nevertheless, returns to credentials decline in tandem with educational expansion, whereas skills retain their premium even as they diffuse in a given society. Furthermore, skills diffusion also leads to the diminishing monetary return to high credentials. These findings suggest that skills diffusion promotes more meritocratic reward allocation via devaluing high credentials without explicit depreciation of high skills.

The association between education and subjective well-being has long been investigated by social scientists. However, prior studies have paid inadequate attention to the influence of societal-level educational expansion and skills diffusion. In this article, multilevel regression analyses, using internationally comparable data for over 48,000 individuals in 24 countries, detect the overall positive linkage between educational attainment and life satisfaction. Nevertheless, this relationship is undermined due to the larger degree of skills diffusion at the societal level, and no longer confirmed once labor market outcomes are accounted for. Meanwhile, the extent of skills diffusion per se is positively and substantially associated with people’s subjective well-being even after adjusting for key individual-level and country-level predictors, whereas other societal conditions including GDP, Gini coefficients, safety, civic engagement, and educational expansion do not indicate significant links with life satisfaction in the current analysis. Given that recent research suggests skills diffusion promotes the formation of meritocratic social systems, one may argue it is the process of fairer rewards allocation underpinned by skills diffusion, rather than the status quo of macroeconomy, economic inequality, social stability, and educational opportunities as such, that matters more to people’s subjective well-being.

Sociologists have long used credential inflation theory to explain the devaluation of tertiary education degrees as the consequence of the excessive supply of educated personnel. However, the literature has inadequately examined two fundamental conditions: the combination of degrees/skills that individuals possess and the level of degrees. In this article, cross-country multilevel regressions reveal lower-level degrees (i.e. short-cycle tertiary) are devalued due to the larger extent of lower-level tertiary expansion in a society, regardless of degree holders’ skills level. This is consistent with the concept of credential inflation. In contrast, alongside the proliferation of higher-level tertiary education (i.e. bachelor and above), individuals with such degrees are penalized only when they lack high skills. Put differently, higher-level degree holders retain their rewards despite their diminishing scarcity as long as they possess high skills. Meanwhile, high skills unaccompanied by tertiary degrees lose their premium merely in connection with lower-level tertiary expansion. These results suggest credentialism is intensified and credential inflation operates in societies where the extent of lower-level tertiary expansion is relatively large, whereas ‘decredentialization’ emerges along with the larger extent of higher-level tertiary expansion in a way that devalues credentials as such whilst relatively enhancing the role of skills in reward allocation.

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While recent research has detected older adults’ resilience during the global pandemic, its unequal distribution is inadequately examined. Using the panel survey data in Japan ( N = 3,725), this positive sociological study investigated who were more/less resilient under COVID-19, with attention to the heterogeneity in life satisfaction (LS). It was first confirmed that older adults’ LS had substantially improved during the pandemic, indicating their resilience on average. However, the multinomial logistic regression and the fixed effects model revealed that the shift in LS was associated with age, gender, income, family/social relationships, and heath in a nuanced way. This suggests, while older adults who have access to economic, social, and health-related resources can maintain/enhance their LS under the global crisis, those without such assets face the risk of being penalized. In these uncertain times, it is therefore imperative to shed light on the resilience divide among older adults alongside their average strength.