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Failing to Finish: The role of employer effects on advanced education attainment

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  • Chesney, Alexander J.

Abstract

This paper investigates how promotion policies impact advanced education attainment on employees throughout a career. Using administrative data from the U.S. Department of Defense (DoD), I leverage a natural experiment where academic credentials were masked from promotion consideration. I exploit an event study and difference-in-differences design to find individuals are 14 percentage points (26 percent relative to the mean) less likely to complete a master’s degree when education credentials are no longer considered for promotion. I then explore possible mechanisms by describing how a graduate degree’s promotion premium fluctuates before and after the policy change. I show attendance at for-profit institutions declined substantially after the policy reform; however, I find the promotion premium of a master’s degree from a for-profit to be similar to other academic institutions.

Suggested Citation

  • Chesney, Alexander J., 2025. "Failing to Finish: The role of employer effects on advanced education attainment," Economics of Education Review, Elsevier, vol. 106(C).
    • Handle: RePEc:eee:ecoedu:v:106:y:2025:i:c:s0272775725000172
    DOI: 10.1016/j.econedurev.2025.102637
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    Keywords

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    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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