The Role of Micro-Credentials in Bridging the Skills Gap between Higher Education and the Platform Economy

Abstract

As the pace of technological change accelerates, traditional degree programs often struggle to keep pace with industry needs, especially in the context of platform business models. Micro-credentials have the potential to serve as a flexible, targeted solution to this challenge. The purpose of the study is to evaluate the potential of using micro-credentials to address the skill gap between the curricula of traditional higher education programs and the evolving demands of the platform economy. The subject of the study is the impact of micro-credential programs on workforce readiness and skill gap between higher education program outcomes and platform economy demands. We conduct a systematic literature review and a comprehensive trend analysis of skill requirements in the platform economy. Our review reveals several key advantages of micro-credentials in the context of the platform economy: more granular and immediately applicable skills, faster curriculum updates to match industry trends, and greater learner flexibility in building personalized skill sets. Additionally, we identify a number of challenges that have to be addressed when planning and incorporating micro-credential programs: quality assurance, implementing appropriate assessment mechanisms, credential recognition and transferability, and potentially higher risk of credential inflation. The study suggests that integrating micro-credentials into existing educational frameworks has the potential to enhance the responsiveness of higher education to labor market needs, particularly in the rapidly developing platform economy. DOI: https://doi.org/10.53486/cike2024.14; UDC: 378.147:[004.78:331.522.4]; JEL Classification: I23, J24