This chapter reviews the evidence on the labor market returns to investing in a college education for students in the U.S. First, we describe the primary method used to estimate the return on investment and catalog the main datasets used. We then summarize the available evidence on the returns to different awards and other types of investment. We show how earnings gains clearly vary with the incremental level and quality of postsecondary education. Completing a bachelor’s degree is associated with large gains in earnings amounting to at least one-quarter million dollars on average over the lifetime. Completing an associate degree is associated with sizeable and persistent earnings advantages over no college award. Completing a certificate can yield earnings gains, but these are variable and may only be temporary. Looking at field of study and college characteristics, we also find clear evidence of variability in returns. Finally, we consider the skills of college students need, both in their current occupations and in the future as robots and computers impact on what workers do. Overall, we find most college investments to have strong labor market pay-offs and that these pay-offs are unlikely to diminish in the near future.

Community colleges have long had multiple missions. The first community college was designed to relieve elite colleges of the burden of educating 18- and 19-year-olds. Thus, it was initially concei...

This chapter examines why typical reforms at community colleges in recent years have not improved institutional graduation rates. It argues that substantially increasing college completion requires comprehensive institutional reform with a focus on measurable student success, an intentional and cohesive package of programmatic components, and a culture of evidence.

While more than 60% of associate degrees and 98% of higher education certificates are classified as “career education,” the value of these programs has been repeatedly questioned. In this paper, we review and develop the evidence base on occupational higher education in the community college sector. We begin by describing the extent and recent growth of occupational credentials, including diplomas and certificates, both in the community college system and the for-profit sector. We then review the evidence on the labor market returns to occupational programs, focusing particularly on whether patterns vary between metropolitan and non-metropolitan residents and by gender. Using SIPP data from 2008, we observe the returns across vocational certificates and associate degrees by field of study. Finally, we draw policy lessons and consider the implications of the Great Recession on changes in the labor market.

The proposals in this report reflect the views of the Study Group alone, but we had conversations with many people whose ideas contributed to our thinking. Our recommendations emerged from several meetings over the course of almost two years. We learned from each other, modified our views, and found much common ground. We are grateful to have had the opportunity to work together to develop these ideas that we hope will influence the direction of public policy.