Post-college Earnings Research Articles

College Selectivity, Choice of Major, and Post-College Earnings

<p style="text-align:justify"><span style="font-family:Times New Roman,Times,serif"><span style="font-size:16px"><span dir="ltr" lang="EN-US"><span style="color:black">College choice and choice of major are the most important decisions for future earnings. It is still unclear, however, what makes a greater difference—college or major—or whether a choice of college matters more for some majors, but not the others. Using cross-classified models and College Scorecard data, I show that a discipline is more consequential for future earnings than a college. The effect of STEM is substantial but is less pronounced at institutions with higher overall median earnings. The effect of college selectivity on earnings is more pronounced for non-STEM disciplines. Institutional characteristics—such as tuition, shares of graduates receiving different forms of financial aid, institutional size and location, and type of college—correlate with earnings of graduates. Racial and gender composition of an educational program correlate with expected earnings of its graduates even after control for other institutional and disciplinary characteristics. Models presented here provide a better understanding of the effect of college and major choices on future earnings.</span></span></span></span></p>

Newcomer Drinking Behavior and Immediate Post-College Earnings Growth: Does Occupational Social Intensity Make a Difference?

Newcomer Drinking Behavior and Immediate Post-College Earnings Growth: Does Occupational Social Intensity Make a Difference?

The State of the Humanities circa 2022

The State of the Humanities circa 2022

Pell Grants and Student Success: Evidence from the Universe of Federal Aid Recipients

The Federal Pell Grant Program lowers the cost of higher education for low-income students. We estimate Pell’s average effect for the universe of federally aided students—the broadest swath of higher education studied to date. Exploiting discontinuities and kinks in the grant schedule, we find that the effect of Pell on completion rates and postcollege earnings is much smaller than the findings of recent prominent studies focused on specific states. We argue that interactions between Pell grants and state aid programs may explain this difference, underscoring the importance of understanding how the impact of financial aid depends on context.

Income Segregation and Intergenerational Mobility Across Colleges in the United States*

Abstract We construct publicly available statistics on parents’ incomes and students’ earnings outcomes for each college in the United States using deidentified data from tax records. These statistics reveal that the degree of parental income segregation across colleges is very high, similar to that across neighborhoods. Differences in postcollege earnings between children from low- and high-income families are much smaller among students who attend the same college than across colleges. Colleges with the best earnings outcomes predominantly enroll students from high-income families, although a few mid-tier public colleges have both low parent income levels and high student earnings. Linking these income data to SAT and ACT scores, we simulate how changes in the allocation of students to colleges affect segregation and intergenerational mobility. Equalizing application, admission, and matriculation rates across parental income groups conditional on test scores would reduce segregation substantially, primarily by increasing the representation of middle-class students at more selective colleges. However, it would have little effect on the fraction of low-income students at elite private colleges because there are relatively few students from low-income families with sufficiently high SAT/ACT scores. Differences in parental income distributions across colleges could be eliminated by giving low- and middle-income students a sliding-scale preference in the application and admissions process similar to that implicitly given to legacy students at elite private colleges. Assuming that 80% of observational differences in students’ earnings conditional on test scores, race, and parental income are due to colleges’ causal effects—a strong assumption, but one consistent with prior work—such changes could reduce intergenerational income persistence among college students by about 25%. We conclude that changing how students are allocated to colleges could substantially reduce segregation and increase intergenerational mobility, even without changing colleges’ educational programs.

The Relationship Between Work During College and Post College Earnings.

Prior research suggests that undergraduates employed during term time are less likely to graduate. Using transcript data from a large multi-campus university in the United States, combined with student earnings data from state administrative records, the authors find that traditional-age students who worked for pay during college on average earned more after leaving college than similar students who did not work. This post-college earnings premium is on par with the benefit from completing a degree, even after controlling for demographic and academic achievement characteristics, across various student sub-groups, and including models that account for selection bias. Implications of these findings for theories of education and social stratification, and for educational policy are considered.

Delayed Time-to-Degree and Post-college Earnings

Increasingly, undergraduates take more than 4 years to complete a baccalaureate, a situation widely perceived as a waste of time and money, for students, their families, and taxpayers. We first identify several phenomena that result in a longer time to degree and document the frequency of such delays. Then, using nationally representative data from the Baccalaureate & Beyond 1993–2003 surveys, we estimate the relationship between delayed time-to-degree and later employment and postcollege earnings, using negative binomial hurdle models. We find that delayed time-to-degree is not related to employment chances but is associated with lower post-college earnings: averaging 8–15%, depending on the length of delay. This average disadvantage is in line with signaling theory. The unique contribution of this study is its thorough analysis of different types of delay, as caused by stopping out and employment. Contrary to the popular assumption that delay is a waste of college resources or a student’s time, we find that delayed graduation in combination with working full-time during college has no negative relationship to post-college earnings. We discuss the time-investment trade-offs and the implications for the applicability of human capital theory to college graduation delays.

Social Dimensions of Student Debt: A Data Mining Analysis

Media commentary on undergraduates' loan debt portrays a crisis in which many students are unable to pay back their loans, having borrowed large sums and lacking sufficient post-college income to repay. Several scholars have questioned the media accounts, noting that indebtedness is highest among students from high income families, while defaults predominate among low debt students. Using a data mining technique known as CART, we analyze national data on the indebtedness of recent baccalaureate graduates, to uncover combinations of social characteristics that are associated with loan pressure: the ratio of indebtedness to post-college earnings. We find that students from lower income families who attend expensive institutions - especially for-profit colleges - accumulate high debt. In contrast to earlier scholarship, after controlling for the net cost of attending a college, we find that lower-income students face much higher loan pressure than students from more affluent families.

The Surprising Labor Market Success of Part-Time Community College Students

ABSTRACT Considerable research has focused on the academic outcomes of part-time undergraduates, but few studies have addressed their post-college labor market outcomes. This study compares the post-college earnings of community college students based on different full-time, part-time, and stop-out trajectories during their first four semesters. Community college students who enroll part-time with no stop-outs during their first four semesters earn significantly more after college than full-timers. Part-timers who did stop out are earning at least as much as their full-time counterparts. These effects are evident both among those who graduate/earn 60 credits and among those who do not. Compared to consistent full-time enrollees, two groups of community college undergraduates have significantly lower post-college earnings in the full sample: full-timers who interrupt their studies with a stop-out and persons who mix full-time with part-time and stopping-out.

The Vertical Transfer Penalty among Bachelor’s Degree Graduates

ABSTRACTNumerous studies have investigated the consequences of vertical transfer on students’ higher education outcomes in comparison to “native 4-year students”—those who went straight from high school into a bachelor’s program. However, the long-term labor market outcomes for vertical transfer students are understudied. Using nationally-representative data from the National Survey of College Graduates 2015, we estimate the relationship between starting in a community college (vs. at a 4-year college) and postcollege earnings and employment, in ways that correct for selection bias and overdispersion. We estimate a roughly 14% earnings disadvantage for baccalaureates who started at a 2-year rather than 4-year institution, regardless of college major. No effect was found on graduates’ employment chances.

A Study to Determine the Impact of Management on Public Service Motivation in Public Sector Employees

Milwaukee Area Technical College (MATC) was tasked with the development of career path information for our students. The IT faculty team, under the direction and leadership of the Associate Dean, created the Information Technology Pathways model. The Associate Dean invested significantly in infrastructure and planning to ensure cross-team knowledge exchange. We also wanted to enhance awareness and increase student engagement via social media platforms like Facebook, Twitter, LinkedIn, YouTube, and MeetUp. This study was designed to create pathways and curriculum that other programs could replicate; other departments can now benefit from the template and design strategies developed to enhance the IT curriculum and pathways. These pathways and the dialogues have led to increased training requests and pooled training. Our MATC case study is a good example that identifies and shares pathways, curriculum development, and partnering with advisory committees to gain input for incorporating instructional technology in the classroom based on student needs. Purpose: This article describes a dynamic and innovative pathway model for instructors to service student, parents, counselor, and employer needs around digital and social technologies that support student enrollment, retention and provide collaborative learning opportunities for improved job placement. The goal is to produce graduates that bring relevant and reliable skill sets that match current business and industry needs. The two primary reasons for enrolling are preparing for a job and career change. In addition, it provides training for a career ladder for training employees who need to advance, many employers are moving incumbent workers along this career path as well. Methodology/Approach: A case study Findings: The integration of pathways including certificates, embedded technical diplomas, associate degrees, online community through digital, mobile and social technologies, MeetUp, LinkedIn, Google Apps, groups, Netlab, Blackboard Learn & Internships.com, have a positive influence on student advising, enrollment, retention and job placement. Many of the social media tools are free so they did not involve increased funding but mostly involved legwork, making them effective tools for reaching new students. Research Limitations: The research was limited to the IT faculty population at MATC, and did not include data collected from students outside the USA to find out what role cultural mores, attitudes and gender play in the learning process. Practical Implications: Workplace employers are increasingly experiencing a skills mismatch and the growing retirement gap. Thus, institutions of higher education are under increased scrutiny regarding the preparedness of their graduates for the workforce. This study provides curriculum design strategies that foster community, utilize mobile, social media and support student learning and retention through effective course design. The sharing of best practices will help the next generation of students with pathways that are connective and progressive and empower them with marketable, stackable credentials. The study provides an entry point for all learners and a bridge to further opportunities on a pathway at any point to gain support and structure for job entry, advancement and higher wages. This is important since there is an increased demand for a credentialed workforce. The end result will be a larger pool of qualified workers and a better pipeline to fill skilled jobs, which subsequently will result in higher employee retention and loyalty. Pathways enable students, faculty and leadership a familiar path of program offerings and job prospects. In addition, this model can be used to inform policy and practice related to performance funding, college affordability, and alignment of higher education and workforce needs, as well as for new research on topics including: state-level labor market outcomes for certificates and degrees; returns to for-profit college credentials; the impact of the federal grants and loans on earnings and employment; challenges in using labor market outcomes data in performance funding systems; and how post-college earnings data can be used to help students make better program and career choices. It is necessary to rethink the academic work environments based on social media tools and applications like Google Groups, MeetUp, Blackboard Building Blocks or LinkedIn, in accordance with the learning needs, skills, and competencies of students.

Measuring the Accountability of CTE Programs: Factors that Influence Postcollege Earnings among Community College Students

In this study specific factors were examined to determine their ability to influence fifth-year earnings of community college students in the manufacturing/science, technology, engineering and math (STEM) career cluster and the arts/audiovisual/technology/communication career cluster. State and national data sets from Iowa's Management Information System, unemployment insurance records, and the National Student Clearinghouse were utilized. Results revealed that gender, age, economic status, degree, and annual gain in earnings in the manufacturing/STEM cluster were significant predictors of fifth-year earnings. Women and traditional-age students need to obtain an associate's degree to reduce the wage gap. Within the arts/audiovisual/technology/communication cluster, women need to obtain an associate's degree if they hope to earn wages comparable to men. Obtaining a credential is important, especially for women and traditional-age students. Students who leave without a degree find themselves earning less than those who received a degree. The article concludes with implications for future research.

The effects of attending a diverse college

The question of whether there are benefits to be obtained from having a diverse student body is a key issue in the debate over affirmative action. This paper estimates the effects of college racial diversity on post-college earnings, civic behavior, and satisfaction with the college attended. I use the Beginning Postsecondary Students survey, which allows me to control for exposure to racial diversity prior to college. Moreover, I use two techniques from Altonji, Elder, and Taber (2005) to address the issue of selection on unobservables. The first is a sensitivity analysis showing how the coefficient on diversity changes when different values of the correlation are imposed in a system of equations that consists of a selection equation and an outcome equation. The second is estimation based upon an assumption that selection on unobservables equals selection on observables, which, along with the OLS results, gives estimates of bounds on the effect. Single-equation estimates suggest a possible positive effect of diversity on satisfaction with the racial climate at the college attended and a negative effect on community service, but I do not find an effect on other outcomes. Moreover, the estimates are very sensitive to the assumptions made about selection on unobservables.

Career and Technical Education as Pathways: Factors Influencing Postcollege Earnings of Selected Career Clusters

This study investigated the relationship between student characteristics such as gender, race/ethnicity, program of study, degree completion, and earnings outcomes for students enrolled in career and technical education (CTE) programs within the business, information technology (IT), and marketing career clusters in community colleges to determine which variables lead to improved earnings for these students. It draws upon data from the Iowa Department of Education (IDE), Iowa Workforce Development (IWD), and the National Student Clearinghouse (NSC). The study found that gender has the strongest influence on earnings for all three of the career clusters, with women earning less in all three. However, this plays out differently between the three clusters. Women who complete degrees in business and marketing earn less even than men who enroll in these programs without completing degrees. However, women who complete associate degrees in IT have an increase in earnings that is higher than that of men and have fifth year earnings that approach those of men. Completion of associate degrees had a positive influence on earnings for marketing and IT, but did not have a significant impact on earnings for the business cluster. The article concludes by addressing implications for research, policy, and practice.

ERIC Review: Community College Students Recent Findings and Trends

Recent shifts in student composition have shaped and will shape community college mission and policies. Community college faculty and administrators should be aware of enrollment shifts, changing admissions standards, and fluctuating age, gender composition, and racial and ethnic identities of students. This review of the literature discusses these findings as well as student assessment and placement, student success and retention, and postcollege earnings.

Economic Benefits of a Community College Education: Issues of Accountability and Performance Measures

AbstractAccountability in community colleges has taken center stage. This chapter focuses on students' post‐college earnings as a specific outcome or performance measure. The authors discuss the benefits of a community college education, outline the methodologies used to assess students, and present policy implications of accountability and performance measures.

The early labor force experience of college students and their post-college success

This paper uses National Longitudinal Survey data to examine the impact of college students' in-school work on their post-college employment and earnings. The empirical evidence from this study suggests that in-school work experience has a positive effect on post-college earnings but not employment. The results also show that the impact of in-school work on post-college earnings reaches its peak at about the third year after graduation and the positive earning effect could last for at least 5 years after graduation.