A Critique of Human Capital Formation in the U.S. and The Economic Returns to Sub-Baccalaureate Credentials

Abstract

This article explores the history of human capital in the United States in relation to scholarly study of the private economic returns to higher education. The focus of this study is the private economic returns to subbaccalaureate education in two-year community and technical colleges. This article argues that although there are some beneficial private rates of return to a subbaccalaureate credential in relation to having no higher education, the benefits are small and often insignificant, especially in relation to the rates of return to a baccalaureate degree. Thus, subbaccalaureate credentials are devalued economic commodities that perpetuate the inequality of U.S. society and the labor market and, therefore, subbaccalaureate education should not be seen as a means to democratize higher educational access, but more as an advanced type of secondary schooling.