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Post-secondary education

Michael F. Lovenheim, Jonathan Smith.

Early research on the returns to higher education treated the postsecondary system as a monolith.  In reality, postsecondary education in the United States and around the world is highly differentiated, with a variety of options that differ by credential (associates degree, bachelor’s degree, diploma, certificate, graduate degree), the control of the institution (public, private not-for-profit, private for-profit), the quality/resources of the institution, field of study, and exposure to remedial education. In this Chapter, we review the literature on the returns to these different types of higher education investments, which has received increasing attention in recent decades. We first provide an overview of the structure of higher education in the U.S. and around the world, followed by a model that helps clarify and articulate the assumptions employed by different estimators used in the literature. We then discuss the research on the return to institution type, focusing on the return to two-year, four-year, and for-profit institutions as well as the return to college quality within and across these institution types. We also present the research on the return to different educational programs, including vocational credentials, remedial education, field of study, and graduate school. The wide variation in the returns to different postsecondary investments that we document leads to the question of how students from different backgrounds sort into these different institutions and programs. We discuss the emerging research showing that lower-SES students, especially in the U.S., are more likely to sort into colleges and programs with lower returns as well as results from recent U.S.-based interventions and policies designed to support success among students from disadvantaged backgrounds. The Chapter concludes with some broad directions for future research.

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Maxwell J. Cook, Cory Koedel, Michael Reda.

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). Compared to enrolling in a non-technical community college program, we find that enrolling in a technical program at State Tech greatly increases students’ likelihoods of graduation and earnings. In contrast, there is no evidence that technical education programs at other Missouri community colleges increase graduation rates, and our estimates of the earnings impacts of these other programs are much smaller than for State Tech. Our findings exemplify the importance of institutional differences in driving the efficacy of technical education and suggest great potential for high-quality programs to improve student outcomes.

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George Bulman, Robert Fairlie.

Although enrollment at California’s four-year public universities mostly remained unchanged by the pandemic, the effects were substantial for students at California Community Colleges, the largest higher education system in the country. This paper provides a detailed analysis of how the pandemic impacted the enrollment patterns, fields of study, and academic outcomes of these students through the first four semesters after it started. Consistent with national trends, enrollment dropped precipitously during the pandemic – the total number of enrolled students fell by 11 percent from fall 2019 to fall 2020 and by another 7 percent from fall 2020 to fall 2021. The California Community College system lost nearly 300,000 students over this period. Our analysis reveals that enrollment reductions were largest among African-American and Latinx students, and were larger among continuing students than first-time students. We find no evidence that having a large online presence prior to the pandemic protected colleges from these negative effects. Enrollment changes were substantial across a wide range of fields and were large for both vocational courses and academic courses that can be transferred to four-year institutions. In terms of course performance, changes in completion rates, withdrawal rates, and grades primarily occurred in the spring of 2020. These findings of the effects of the pandemic at community colleges have implications for policy, impending budgetary pressures, and future research.

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Lucas Husted, Isaac M. Opper, R. Jisung Park.

We show that natural disasters affect a region’s aggregate human capital through at least four channels. In addition to causing out-migration, natural disasters reduce student achievement, lower high school graduation rates, and decrease post-secondary attendance. We estimate that disasters that cause at least $500 in per capita property damage reduce the net present value (NPV) of an affected county’s human capital by an average of $505 per person. These negative effects on human capital are not restricted to large disasters: less severe events – disasters with property damages of $100-$500 per capita – also cause significant and persistent reductions in student achievement and post-secondary attendance.

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Shamena Anwar, Matthew Baird, John Engberg, Rosanna Smart.

The primary goal of job training programs is to improve employment and earning outcomes of participants. However, effective job training programs may have potential secondary benefits, including in the form of reduced arrests. In this paper, we evaluate the impact of a job training program in New Orleans that was implemented using a randomized controlled trial design. We find that among those who had a prior criminal record, those assigned to the treatment group were two-fifths as likely to get arrested as those assigned to the control group at any time point after randomization. We explore several potential mechanisms for why this effect occurs and find suggestive evidence that the training program’s impact on wages, as well as peer effects from other trainees, can partially explain this effect.

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Andrew C. Barr, Kelli A. Bird, Benjamin L. Castleman, William L. Skimmyhorn.

Non-traditional students disproportionately enroll in institutions with weaker graduation and earnings outcomes. One hypothesis is that these students would have made different choices had they been provided with better information or supports during the decision-making process. We conducted a large-scale, multi-arm field experiment with the U.S. Army to investigate whether personalized information and the offer of advising assistance affect postsecondary choices and attainment among non-traditional adult populations. We provided U.S. Army service members transitioning out of the military with a package of research-based information and prompts, including quality and cost information on a personalized set of matched colleges, messages targeted at addressing veteran-specific concerns or needs, and reminders about key stages in the college and financial aid application process. For a randomly selected subset of the experimental sample, we also provided service members with opportunities to connect with a college advisor. We find no overall impact of the intervention on whether service members enroll in college, on the quality of their college enrollment, or on their persistence in college. We find suggestive evidence of a modest increase in degree completion within the period of observation, with these impacts mainly driven by increased attainment at for-profit institutions. Our results suggest that influencing non-traditional populations’ educational decisions and outcomes will require substantially more intensive programs and significant resources.

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Kelli A. Bird, Benjamin L. Castleman, Gabrielle Lohner.

The COVID-19 pandemic led to an abrupt shift from in-person to virtual instruction in Spring 2020. We use two complementary difference-in differences frameworks, one that leverages within-instructor-by-course variation on whether students started their Spring 2020 courses in person or online and another that incorporates student fixed effects. We estimate the impact of this shift on the academic performance of Virginia’s community college students. With both approaches, we find modest negative impacts (three to six percent) on course completion. Our results suggest that faculty experience teaching a given course online does not mitigate the negative effects. In an exploratory analysis, we find minimal long-term impacts of the switch to online instruction.

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Serena Canaan, Pierre Mouganie, Peng Zhang.

Despite the prevalence of school tracking, evidence on whether it improves student success is mixed. This paper studies how tracking within high school impacts high-achieving students’ short- and longer-term academic outcomes. Our setting is a large and selective Chinese high school, where first-year students are separated into high-achieving and regular classrooms based on their performance on a standardized exam. Classrooms differ in terms of peer ability, teacher quality, class size, as well as level and pace of instruction. Using newly collected administrative data and a regression discontinuity design, we show that high-achieving classrooms improve math test scores by 23 percent of a standard deviation, with effects persisting throughout the three years of high school. Effects on performance in Chinese and English language subjects are more muted. Importantly, we find that high-achieving classrooms substantially raise enrollment in elite universities, as they increase scores on the national college entrance exam—the sole determinant of university admission in China.

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Riley Acton.

In the competitive U.S. higher education market, institutions differentiate themselves to attract both students and tuition dollars. One understudied example of this differentiation is the increasing trend of "colleges" becoming "universities" by changing their names. Leveraging variation in the timing of such conversions in an event study framework, I show that becoming a university increases enrollments at both the undergraduate and graduate levels, which leads to an increase in degree production and total revenues. I further find that these effects are largest when institutions are the first in their market to convert to a university and can lead to negative spillover effects on non-converting colleges.

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Soobin Kim, John Yun, Barbara Schneider, Michael Broda, Christopher Klager, I-Chien Chen.

We study the long-term effects of a psychological intervention on longitudinal academic outcomes and degree completion of college students. All freshmen at a large public university were randomized to an online growth mindset, belonging, or control group. We tracked students’ academic outcomes including GPA, number of credits attempted and earned, major choices, and degree completion. We found no evidence of longitudinal academic treatment effects in the full sample. However, the mindset treatment improved term GPAs for Latinx students and the probability for Pell-eligible and Latinx students to major in selective majors. We also found no evidence of increased rates of on-time graduation, however, the treatment raised the probability to graduate with selective majors in four years, especially for Latinx students.

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