The effect of promoting access to community colleges on educational and labor market outcomes

Sie Won Kim

Labour Economics, 2023, vol. 85, issue C

Abstract: Community colleges offer an affordable postsecondary education and serve as a stepping stone to a four-year college degree. However, it is unclear how increased access to community colleges affects educational and labor market outcomes. To investigate this issue, I estimate a structural model of employment and college choices and evaluate policy interventions designed to promote access to community colleges: tuition subsidies and easier transition from two- to four-year colleges. I find that tuition subsidies at two-year colleges increase enrollment in community colleges and the average lifetime income but decrease four-year college degree attainment. In addition, I show that the transfer policy decreases enrollment in both two- and four-year colleges but increases bachelor’s degree attainment for high-ability students.

Keywords: Community college; Tuition subsidy; Dynamic discrete choice model (search for similar items in EconPapers)
JEL-codes: I22 I26 J24 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:85:y:2023:i:c:s0927537123001136

DOI: 10.1016/j.labeco.2023.102438

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