Institutional heterogeneity in the education and earnings returns to postsecondary technical education: Evidence from Missouri

We estimate the education and earnings returns to enrolling in technical two-year degree programs at community colleges in Missouri. A unique feature of the Missouri context is the presence of a highly regarded, nationally ranked technical college: State Technical College of Missouri (State Tech). We find that enrolling in a technical program in Missouri increases the likelihood of associate degree attainment and post-enrollment earnings, but that the positive effects statewide are driven largely by students who attend State Tech. These findings demonstrate the potential for a high-performing community college to change students’ education and labor market trajectories. At the same time, they exemplify the potential for substantial institutional heterogeneity in the returns to postsecondary education.