From Credentials to Competencies and Impact: A Systematic Literature Review of The Human Capital Transformation of Education
Keywords:
Human Capital, Credentialalism, Competence, Micro-credentials, Agency CapitalAbstract
The evolution of human capital theory is now facing a critical inflection point, where the legitimacy of formal diplomas is eroded by qualification inflation and the disruption of artificial intelligence, prompting a shift toward proving real impact. This study uses the Systematic Literature Review (SLR) method with the PRISMA protocol, analyzing 9 selected empirical articles from the Scopus database (2020–2026) to map the dynamics of transformation from the credential regime to the competency regime. The results of the study reveal the trend of adopting micro-credentials and "Agency Capital" which is empirically proven to increase professional self-efficacy in a just-in-time manner. However, this transformation is hampered by conservative "market hegemony", where recruitment still prioritizes institutional reputation and a bias of "cultural fit" over technical competence, as well as the risk of epistemological shallowness that traps the workforce in the precarity of "gig qualifications". It is concluded that the current management of human capital is trapped in a structural paradox; pedagogical innovation will not be effective without authentic validation reforms and deconstructions of market biases, which if ignored will only perpetuate "defensive credentials" without substantive social mobility.
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