The Impact of Community College Attributes on the Earnings of Their Students

Abstract

ABSTRACT As the cost of higher education has continued to rise, public interest in the proportional economic return on investment in higher education has also grown. While research associating the quality of education and institutional attributes with graduate earning potentials exists in the university sector, fewer studies have focused on earning potentials of community college graduates. This study investigates the relationship between community college attributes, including fixed, compositional, and financial characteristics, and the mean earnings of former community college students. Of 53 variables, 12 had a significant impact on mean earnings including the socio-economic conditions surrounding the institutions, student demographics, percentage of students who complete within 2 years, net tuition, and share of students who receive either a Pell Grant or a federal loan. Changing demographics of community college students, the increased cost of a community college education, and the need for additional support for two-year degrees/certifications will continue to be a challenge to the overall mission of community colleges.