IES Blog

Institute of Education Sciences

What Are the Payoffs to College Degrees, Credentials, and Credits?

The Center for Analysis of Postsecondary Education and Employment (CAPSEE) is an IES-funded Research and Development Center that seeks to advance knowledge regarding the link between postsecondary education and the labor market. CAPSEE was funded through a 2011 grant from the National Center for Education Research (NCER) and is in the process of completing its work. CAPSEE will hold a final conference to discuss its findings on April 6 & 7 in Washington, DC.

Recently, Tom Bailey (pictured), Director of the Community College Research Center, Columbia University, Teachers College, and the Principal Investigator for CAPSEE, answered questions from James Benson, the NCER Program Officer for the R & D center.

Can you describe some of the original goals of CAPSEE?

We were especially interested in the economic benefits of a college education for community college students, including those who complete awards (Associate’s degrees or certificates) and those who do not, as well as those who transfer to four-year colleges. We were also interested in differences in earnings by field of study. When we started CAPSEE in 2012 there were a lot of studies that used survey datasets to look, in general, at the returns to completing a Bachelor’s degree. The CAPSEE approach was to use large-scale statewide databases and follow college students over time, to look in detail at their earnings before, during, and after college.

In addition, CAPSEE researchers sought to examine two key policy issues. One was how financial aid and working while enrolled affect students’ performance in college and their labor market outcomes. The other was whether for-profit colleges help students get better jobs.

You have synthesized findings from analyses in six states. What are your main findings?

We found that, in general, Associate’s degrees have good returns in the labor market; they’re a good investment for the individual and for society. However, there is quite a bit of variation in returns by program. For students in Associate degree programs primarily designed to prepare them for transfer to a four-year college, if they don’t transfer, their degrees will not be worth very much. But when they complete vocational degrees, especially in health-related fields, the earnings gains are usually strong and persistent (and robust to how we estimated them). Also, we did a lot of research on certificates, credentials that many see as the best fit for students on the margin of going to college. We found benefits to students who completed certificates, again especially in fields that directly relate to an occupation or industry. And finally, we examined outcomes for students who enrolled and took courses without attaining a degree or certificate. We found that their after-college earnings increased in proportion to the number of credits they earned.

"The fundamental policy implication is that college is a good investment."

What do you see as the key policy implications of these findings?

The fundamental policy implication is that college is a good investment. This merits emphasis because there are repeated critiques of college in terms of how much it costs and how much debt students accumulate. That said policymakers do need to think about the value of each postsecondary program. Even within the same institution, programs have very different outcomes. Yet on average, attending college for longer and attaining more credits has beneficial effects. Policymakers should see this evidence as supporting public and private investments in college.

What did you discover about the relationships between financial aid, college outcomes, and labor market outcomes?

In an era of tight public resources, the effectiveness of financial aid policy is a crucial issue. Financial aid does help students persist in college, but one way to promote greater effectiveness is through academic performance standards for students receiving federal financial aid. These have existed in the federal need-based aid programs for nearly 40 years, in the form of Satisfactory Academic Progress (SAP) requirements. These have not received much attention. Our research on SAP suggests such policies have heterogeneous effects on students in the short term: they increase the likelihood that some students will drop out, but appear to motivate higher grades for students who remain enrolled. After three years, however, the negative effects dominate. Though it has little benefit for students in the long term, SAP policy appears to increase the efficiency of aid expenditures because it discourages students who have lower-than-average course completion rates from persisting. But the policy also appears to exacerbate inequality in higher education by pushing out low-performing, low-income students faster than their equally low-performing, higher-income peers.

Many students work while in college.  Does this seem to help or hurt students in the long run?

Our research found that for Federal Work-Study (FWS) participants who would have worked even in the absence of the program, FWS reduces hours worked and improves academic outcomes but has little effect on post-college employment outcomes. For students who would not have worked, the effects are reversed: the program has little effect on graduation, but a positive effect on post-college employment.  Results are more positive for participants at public institutions, who tend to be lower income than participants at private institutions. Our findings suggest that better targeting to low-income and lower-scoring students could improve FWS outcomes. This is consistent with much of the CAPSEE research—you need more detail and specificity to really understand the relationship between education and employment and earnings.

What did you learn about credentials from for-profit institutions?

Our findings on students at for-profit colleges were quite pessimistic. Although enrollment in for-profit colleges grew significantly after 2000, the sector has been declining during the last two years, as evidence on inferior outcomes – particularly with regard to student debt – emerged. In general, our researchers found that for-profit students have worse labor market outcomes than comparable community college students although in some cases the difference is not statistically significant. Our evidence suggests that these colleges need to be monitored to ensure they are delivering a high-quality, efficient education.

You are holding the final CAPSEE conference in April. What do you hope people will get out of it?

At the conference, we will focus on several important and controversial policy questions related to higher education: 

  • Have changes in tuition and the labor market created conditions in which college is not worth it for some students, contributing to an unsupportable increase in student debt? 
  • Has higher education contributed to inequality rather than promoting economic mobility? 
  • Is continued public funding of college a worthwhile investment? 
  • Should public funding be used only for some programs of study?  
  • What are the arguments for and against making community college free?
  • Can changes in the operations and functioning of colleges change the return on investment from a college education for both the individual and society?
  • How important should information on earnings outcomes be for accreditation decisions and/or for eligibility of students to receive financial aid? 

At the conference participants will have the opportunity to discuss and learn about these issues drawing on five years of CAPSEE research as well as input from other experts.

Research Update: Effective Post-school Transition Practices for Students with Disabilities

The special education research community has increasingly focused on how best to support students with disabilities in the transition from high school to postsecondary education or adult life. 

Transition supports provided in schools for these youth can differ and, as a result, the outcomes for these students during and after high school can vary a great deal.[1] The National Center for Special Education Research (NCSER) has funded several grants on the topic.

Some of these NCSER-funded studies have incorporated and evaluated new approaches to provide educators with concrete information about effective practices to promote positive transition outcomes during and after high school.  Here is a brief update on a few promising programs and practices.

Picture (clockwise from top left) - David Test, Mary Wagner, Erik Carter, Sarah Gennen. Photos from university websites.

David Test, Tiana Povenmire-Kirk, Claudia Flowers, and their colleagues at the University of North Carolina at Charlotte recently completed a four-year study of the effects of a transition-planning service delivery system model on transition outcomes for students with disabilities. Communicating Interagency Relationships and Collaborative Linkages for Exceptional Students (CIRCLES) is a three-tier model of interagency collaboration among community, school, and IEP teams (see graphic).[2] The effect of CIRCLES was studied using a group-randomized controlled trial, the first rigorous evaluation of such an intervention. Results indicated many positive impacts of the program including increased collaboration among teams, and increased rates of self-determination, IEP participation, and academic performance for CIRCLE students as compared to students in the control group receiving business-as-usual supports for transition.[3] One year after exiting high school, No differences in post-school outcomes were observed for those in CIRCLES as compared to those in the control group. However, these data were obtained for fewer than half of the original sample. More research is to be done to determine the true impact of CIRCLES on post-school outcomes.   

Mary Wagner and her team addressed questions about the impact of interventions for high school students with autism spectrum disorders using a quasi-experimental design and longitudinal data from several national datasets. Her team found that 2- or 4-year college enrollment rates were significantly higher among youth with autism who participated in transition planning and those who had a primary transition goal of college enrollment.[4] In addition, the results indicated that these enrollment rates were significantly higher among students with autism who were included in secondary school general education English, math, science, or social studies classes than their peers with ASDs who were not included in these classes.[5]

Erik Carter at Vanderbilt University and his research team undertook a four-year study to examine the effect of peer support and peer network strategies as alternatives to traditional paraprofessional-delivered support to assist adolescents with severe disabilities in the classroom. The research team examined the impact of these interventions and found significant increases in participating students’ progress on individual goals, peer interactions and social relationships, social and academic engagement, and community participation compared to those receiving traditional paraprofessional support.[6] Previous research on transition interventions of this kind helped to identify evidence-based practices but this study was the first to rigorously evaluate them. Peers in the classroom can play a unique and valuable role in the welfare of adolescents with severe disabilities, and paraprofessionals and special educators can serve in a different role as facilitators of the peer support provided in these interventions.

Sarah Geenen, Laurie Powers, and their team at Portland State University conducted a longitudinal, experimental study to assess the efficacy of a supplemental transition program designed for youth in high school who are in both special education and foster care. Foster care students, they note, are disproportionately more likely to receive special education services than non-foster care students. The results were compelling, with meaningful and positive effects on youth participants, with lower rates of involvement in the juvenile justice system and increased independent living preparation and skills as compared to non-participants.[7]

Learn more about NCSER-funded work in the Transition Outcomes for Secondary Students with Disabilities topics on the Institute of Education Sciences website or contact Kim Sprague at Kimberley.Sprague@ed.gov.

Written by Diane Mechner, University of Virginia, and Kim Sprague, Program Officer for Transition. Ms. Mechner, a student, was a 2016 IES summer intern.


[2] Povenmire-Kirk, T., Diegelmann, K., Crump, K., Schnorr, C., Test, D.W., Flowers, C., & Aspel, N. (2015). Implementing CIRCLES: A new model for interagency collaboration in transition planning. Journal of Vocational Rehabilitation, 42, 51-65.

[3] Flowers, C., Test, D. W., Povenmire-Kirk, T., Kemp-Inman, A., Diegelmann, K. M., & Bunch-Crump, K. (in press). A cluster randomized controlled trial of a multi-level model of interagency collaboration. Exceptional Children.

[4] Wei, X., Wagner, M., Yu, J. W., Hudson, L., & Javitz, H. (2016). The effect of transition planning and goal-setting on college enrollment among youth with an Autism Spectrum Disorder. Remedial and Special Education, 37(1), 3-14, doi:10.1177/0741932515581495.

[5] Wei, X., Wagner, M., Yu, J. W., & Javitz, H. (in press). The effect of general education inclusion on college enrollment rates among youth with Autism Spectrum Disorders. Autism.

[6] Carter, E. W., Asmus, J., Moss, C. K., Biggs, E. E., Bolt, D. M., Born, T., Brock, M. E., Cattey, G. N., Chen, R,, Cooney, M., Fesperman, E., Hochman, J. M., Huber, H. B., Lequia, J. L., Lyons, G., Moyseenko, K. A., Riesch, L. M., Shalev, R. A., Vincent, L. B., & Weir, K. (2016). Randomized evaluation of peer support arrangements to support the inclusion of high school students with severe disabilities. Exceptional Children, 82(2), 209-233, doi:0014402915598780.

[7] Powers, L. E., Geenen, S., Powers, J., Pommier-Satya, S., Turner, A., Dalton, L. D., Drummond, D., & Swank, P. (2012). My life: Effects of a longitudinal, randomized study of self-determination enhancement on the transition outcomes of youth in foster care and special education. Children and Youth Services Review, 34, 2179–2187, doi:10.1016/j.childyouth.2012.07.018.

 

Education at a Glance 2016: Situating Education Data in a Global Context

By Lauren Musu-Gillette

Putting educational and economic outcomes in the United States within a global context can help researchers, policy makers, and the public understand how individuals in the U.S. compare to their peers internationally.  Education at a Glance, an annual publication produced by the Organisation for Economic Co-operation and Development (OECD), provides data on the structure, finances and progress of education systems in the 35 OECD countries, including  the U.S., as well as a number of partner countries. This type of data is important to understand as our students compete in an increasingly global society.

The recently released 2016 edition of the report indicates that the U.S. is above the average on some measures, but there are others presented in the report in which the U.S. lags behind our international peers.

For instance, the share of U.S. adults with a postsecondary education remains above the OECD average. In the U.S., 45 percent of adults, ages 25-64, have at least some postsecondary education, which is 10 percentage points above the OECD average. However, this advantage is shrinking because the postsecondary enrollment in other OECD countries is increasing more rapidly than in the U.S., where enrollment rates have begun to level off.

The United States continues to be a global leader in attracting international students to attend our postsecondary institutions at the postbaccalaureate level. In 2014, international students made up only 3.5 percent of students enrolled in bachelor’s or equivalent programs, compared with 9% in master’s or equivalent programs and 35% in doctoral or equivalent programs. The U.S., along with the United Kingdom and France, attract more than half of master's and doctoral international students worldwide.

In terms of labor market outcomes, gender disparities in earnings are wider in the U.S. than the OECD average. Among adults in the U.S. with postsecondary education, women earn only 68% of what men earn. This gender gap is larger than the gap for all other OECD countries except Brazil, Chile, Israel, Mexico and the Slovak Republic. Similar gaps exist for males and females in the U.S. across all levels of education.

This is just a small slice of the information that can be found in Education at a Glance 2016. You can also find a wealth of other data on topics of perennial interest, such as the percentage of 3- and 4-year-olds enrolled in early childhood education programs; working conditions of teachers, including time spent in the classroom and salary data; and education finance and per-student expenditures. A relatively new feature is an international comparison for states and other subnational units on key education indicators.

Browse the full report to see how the U.S. compares to other countries on these important education-related topics.

Back to School by the Numbers

By Dana Tofig, Communications Director, Institute of Education Sciences

Across the country, hallways and classrooms are full of activity as students head back to school for the 2016–17 academic year. Each year, the National Center for Education Statistics (NCES) compiles some back-to-school facts and figures that give a snapshot of our schools and colleges for the coming year. You can see the full report on the NCES website, but here are a few “by-the-number” highlights. You can also click on the hyperlinks throughout the blog to see additional data on these topics.

The staff of NCES and the Institute of Education Sciences hopes our students, teachers, administrators and families have an outstanding school year!

 

50.4 million

The number of students expected to attend public elementary and secondary schools this year—slightly more than the 2015–16 school year. The racial and ethnic profile of these students will continue to shift, with 24.6 million White students, 7.8 million Black students, 13.3 million Hispanic students, 2.7 million Asian/Pacific Islanders students, 0.5 million  American Indian/Alaska Native students, and 1.5 million students who are two or more races. About 5.2 million students are expected to attend private schools.

 

16.1

The expected number of public school students per teacher in fall 2016. This ratio hasn’t changed much since 2000, when it was 16.0. However, the pupil/teacher ratio is lower in private schools—12.1—and has fallen since 2000, when it was 14.5. 

 

$11,600

This is the projected per-student expenditure in public elementary and secondary schools in 2016–17. Adjusting for inflation, per student expenditures are expected to rise about 1.5 percent over last school year.

 

3.5 million

The number of students expected to graduate from high school this academic year—nearly 3.2 million from public school and more than 310,000 from private schools.

 

20.5 million

This is the number of students expected to attend American colleges and universities this fall—an increase of 5.2 million since fall 2000. About 11.7 million of these students will be female, compared with 8.8 million males. About 13.3 million will attend four-year institutions and 7.2 million will attend two-year institutions.

 

14.5% and 16.5%

These percentages represent college students who were Black and Hispanic, respectively, in 2014. From 2000 to 2014, the percent of college students who were Black rose 2.8 percentage points (from 11.7 percent to 14.5 percent) and the percent of college students who were Hispanic rose 6.6 percentage points (from 9.9 percent to 16.5 percent).

 

$16,188 and $41,970

These are the average annual prices for undergraduate tuition, fees, room, and board at public and private non-profit institutions, respectively, for the 2014–15 academic year. The average annual price at private, for-profit institutions was $23,372. 

 

The What Works Clearinghouse Goes to College

By Vanessa Anderson, Research Scientist, NCEE

The What Works Clearinghouse (WWC) was founded in 2002 and, in its first decade, focused mainly on reviewing studies of programs, policies, products and practices—or interventions—for improving student outcomes in pre-K, elementary and secondary schools. But in 2012, the WWC broadened its focus and has been using rigorous standards to review studies of interventions designed to increase the success of students in postsecondary education.

This week, the WWC launches a new topic—Supporting Postsecondary Success—and it is a good time to look at the work we’re doing, and will do, in the postsecondary area. 

The WWC postsecondary topic area includes reviews of studies on a wide range of interventions, including learning communities, summer bridge programs, multi-faceted support programs, academic mentoring, and interventions that aim to reduce performance anxiety. As of today, 294 postsecondary studies have been reviewed by the WWC. Those reviews are summarized in six Intervention Reports, 25 Single Study Reviews, and four Quick Reviews. And there’s much more in the works!  For instance, a WWC Educator’s Practice Guide that includes strategies for supporting students in developmental education is planned for publication later this year. (Learn more about Practice Guides)

Identifying Studies for Review

In the postsecondary topic area, there are currently three main ways that studies are identified by the WWC for review.

The first is studies that are reviewed for WWC Intervention Reports. All WWC Intervention Reports use a systematic review process to summarize evidence from all available studies on a given intervention. The WWC conducts a broad search for all publicly available studies of interventions that are related to the topic. This process often identifies hundreds of studies for review. The effectiveness studies are then reviewed against WWC standards. Only the highest quality studies are summarized in an Intervention Report.

We released two new intervention reports this week as part of our new Supporting Postsecondary Success topic. You can view the new Intervention Reports on Summer Bridge programs and first-year experience courses on the WWC website.

The second way that studies are reviewed by the WWC is through Quick Reviews, which are performed on studies that have received a great deal of media attention. In these reports, the WWC provides a brief description of the study, the author-reported results, and a study rating. We like to think of Quick Reviews as a way to help people decide whether to fully believe the results of a study, based on the research design and how the study was conducted. For example, we released a quick review earlier this month that focused on a study of computer usage and student outcomes for a class at the U.S. Military Academy at West Point.

Finally, the WWC reviews postsecondary studies submitted as supporting evidence for discretionary grant competitions funded by the U.S. Department of Education, such as the Strengthening Institutions Program, First in the World and TRIO Student Support Services. These grant competitions require applicants to submit studies as evidence of the effectiveness of the interventions they propose to implement. The WWC reviews these studies and includes the results of those reviews in our database.

If you want to see all the studies on postsecondary interventions that have been reviewed by WWC you can check out—and download—the Reviewed Studies Database. In the “Topic Areas” dropdown menu, just select “Postsecondary,” and then easily customize the search by rating, publication type, and/or reasons for the review (such as a grant competition).  

For more information, visit the WWC postsecondary topic area on the website. To stay up-to-date on WWC news, information, and products, follow us on Facebook, Twitter and sign up for the WWC newsflash!