Keywords: Two-year college, four-year college, community college, training, returns to schooling
Abstract: This paper uses the NLSY to examine (1) the returns to two-year college,
(2) whether attendance at a two-year college helps students to transfer
to four-year college, and (3) whether reducing tuition would alter
attendance enough to affect labor outcomes. I find that the returns
to a year of two-year college are large (7 to 10 percent). Completing an
associate's degree raises wages further. One year of two-year credits has
the same effect on subsequent four-year attendance as one year of four-year
credits. Finally, simulations show that reducing tuition could raise
income modestly by increasing college attendance.
Full paper (2476 KB PDF)
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Last update: January 27, 1998