Is It Worth It? Postsecondary Education and Labor Market Outcomes for the Disadvantaged

Benjamin Backes (), Harry Holzer and Erin Dunlop Velez ()
Additional contact information
Benjamin Backes: American Institutes for Research
Erin Dunlop Velez: RTI International

No 8474, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we examine a range of postsecondary education and labor market outcomes, with a particular focus on minorities and/or disadvantaged workers. We use administrative data from the state of Florida, where postsecondary student records have been linked to UI earnings data and also to secondary education records. Our main findings can be summarized as follows: 1) Gaps in secondary school achievement can account for a large portion of the variation in postsecondary attainment and labor market outcomes between the disadvantaged and other students, but meaningful gaps also exist within achievement groups, and 2) Earnings of the disadvantaged are hurt by low completion rates in postsecondary programs, poor performance during college, and not choosing high-earning fields. In particular, significant labor market premia can be earned in a variety of more technical certificate and Associate (AA) programs, even for those with weak earlier academic performance, but instead many disadvantaged (and other) students choose general humanities programs at the AA (and even the Bachelor’s or BA) level with low completion rates and low compensation afterwards. A range of policies and practices might be used to improve student choices as well as their completion rates and earnings.

Keywords: postsecondary education; earnings; certificates; associate degrees; bachelor degrees; fields of study; low-income students; minority students (search for similar items in EconPapers)
JEL-codes: I23 I24 J24 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2014-09
New Economics Papers: this item is included in nep-edu and nep-lab
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Citations: View citations in EconPapers (1)

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Journal Article: Is it worth it? Postsecondary education and labor market outcomes for the disadvantaged (2015)
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