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By providing high-quality, internationally comparable data on the cognitive skills of working-age adults, the Programme for the International Assessment of Adult Competencies (PIAAC) offers great potential for illuminating the complex interplay of formal qualifications and skills in shaping labor market attainment as well as social inequalities more broadly. I argue that PIAAC can be used to construct direct, country-level measures of the ‘skill transparency’ or ‘signaling value’ of formal qualifications, that is, of how informative the latter are about a person's actual skills. The primary goal of the analysis is to extend previous work on skills gaps by educational attainment and map cross-national variation in the internal skills homogeneity of educational groups as a second dimension shaping the signaling value of educational degrees. I also explore whether the internal homogeneity of educational groups is related to national (secondary) education systems.

Measuring the signaling value of educational degrees: secondary education systems and the internal homogeneity of educational groups