Heterogeneity in the Returns to Credits for Public Two-Year College Entrants

Area of Science:

• Higher Education Research
• Economics of Education
• Labor Economics

Background:

• Public two-year colleges are crucial entry points to postsecondary education.
• Many students attend but do not earn credentials.
• Existing research on returns to higher education often focuses on credentials, not individual credits.

Purpose of the Study:

• To examine the returns to different types of college credits (academic, technical, developmental).
• To understand how returns to credits vary with degree attainment among two-year college students.
• To identify which specific college credits yield the greatest economic returns.

Main Methods:

• Utilized state administrative data following a population of public two-year college entrants.
• Employed a series of individual fixed effects models.
• Analyzed returns to academic, technical, and developmental credits.

Main Results:

• Average estimates of credit returns obscure varied patterns among students.
• Sub-baccalaureate credential recipients show different returns to academic and technical credits compared to peers.
• Returns to specific credit types differ significantly based on degree attainment.

Conclusions:

• The type of college credits earned matters for economic returns.
• Returns are not uniform across all students or credit types at two-year institutions.
• Policy and practice should consider the differential value of various credits for student outcomes.