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The Earnings Effect of Education at Community Colleges

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  • Marcotte, Dave E.

    (American University)

Abstract

In this paper, I make use of data from the 2000 follow-up of the National Education Longitudinal Survey (NELS) post-secondary education transcript files to extend what is known about the value of education at community colleges. I examine the effects of enrollment in community colleges on students’ subsequent earnings. I estimate the effects of credits earned separate from credentials because community colleges are often used as a means for students to engage in study not necessarily leading to a degree or certificate. I find consistent evidence of wage and salary effects of both credits and degrees, especially for women. There is no substantial evidence that enrollment in vocational rather than academic coursework has a particularly beneficial effect, however.

Suggested Citation

  • Marcotte, Dave E., 2006. "The Earnings Effect of Education at Community Colleges," IZA Discussion Papers 2334, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2334
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    References listed on IDEAS

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    1. Kevin M. Murphy & Finis Welch, 1992. "The Structure of Wages," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 285-326.
    2. Duane E. Leigh & Andrew M. Gill, 1997. "Labor Market Returns to Community Colleges: Evidence for Returning Adults," Journal of Human Resources, University of Wisconsin Press, vol. 32(2), pages 334-353.
    3. Alfonso, Mariana & Bailey, Thomas R. & Scott, Marc, 2005. "The educational outcomes of occupational sub-baccalaureate students: evidence from the 1990s," Economics of Education Review, Elsevier, vol. 24(2), pages 197-212, April.
    4. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Trends in U.S. Wage Inequality: Re-Assessing the Revisionists," NBER Working Papers 11627, National Bureau of Economic Research, Inc.
    5. Thomas J. Kane & Cecilia Elena Rouse, 1999. "The Community College: Educating Students at the Margin between College and Work," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 63-84, Winter.
    6. Norton Grubb, W., 1997. "The returns to education in the sub-baccalaureate labor market, 1984-1990," Economics of Education Review, Elsevier, vol. 16(3), pages 231-245, June.
    7. Kane, Thomas J & Rouse, Cecilia Elena, 1995. "Labor-Market Returns to Two- and Four-Year College," American Economic Review, American Economic Association, vol. 85(3), pages 600-614, June.
    8. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-1381, September.
    9. David T. Ellwood, 2001. "The Sputtering Labor Force of the 21st Century. Can Social Policy Help?," NBER Working Papers 8321, National Bureau of Economic Research, Inc.
    10. Grubb, W. Norton, 2002. "Learning and earning in the middle, part II: state and local studies of pre-baccalaureate education," Economics of Education Review, Elsevier, vol. 21(5), pages 401-414, October.
    11. Grubb, W. Norton, 2002. "Learning and earning in the middle, part I: national studies of pre-baccalaureate education," Economics of Education Review, Elsevier, vol. 21(4), pages 299-321, August.
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    Cited by:

    1. Holzer, Harry J. & Dunlop Velez, Erin, 2013. "Just the Facts, Ma'am: Postsecondary Education and Labor Market Outcomes in the U.S," IZA Discussion Papers 7319, Institute of Labor Economics (IZA).
    2. Pamela Blumenthal & Harold L. Wolman & Edward Hill, 2009. "Understanding the Economic Performance of Metropolitan Areas in the United States," Urban Studies, Urban Studies Journal Limited, vol. 46(3), pages 605-627, March.
    3. Dave E. Marcotte, 2019. "The Returns to Education at Community Colleges: New Evidence from the Education Longitudinal Survey," Education Finance and Policy, MIT Press, vol. 14(4), pages 523-547, Fall.
    4. Geoff Mason, 2014. "Skills and training for a more innovation-intensive economy," National Institute of Economic and Social Research (NIESR) Discussion Papers 431, National Institute of Economic and Social Research.
    5. Manuel S. González Canché, 2020. "Community College Students Who Attained a 4-Year Degree Accrued Lower Student Loan Debt than 4-Year Entrants Over 2 Decades: Is a 10 Percent Debt Accumulation Reduction Worth the Added “Risk”? If So, ," Research in Higher Education, Springer;Association for Institutional Research, vol. 61(7), pages 871-915, November.
    6. Celeste K. Carruthers & Christopher Jepsen, 2020. "Vocational Education: An International Perspective," CESifo Working Paper Series 8718, CESifo.
    7. Liu, Vivian Y.T. & Belfield, Clive R. & Trimble, Madeline J., 2015. "The medium-term labor market returns to community college awards: Evidence from North Carolina," Economics of Education Review, Elsevier, vol. 44(C), pages 42-55.
    8. Chung, Anna, 2008. "The Effects of For-Profit College Training on Earnings," MPRA Paper 18972, University Library of Munich, Germany, revised May 2009.

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    More about this item

    Keywords

    earnings; training; community college; human capital;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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