Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

Community College Educations Pay Off In The Labor Market


Economic Trends

COMMUNITY COLLEGE EDUCATIONS PAY OFF IN THE LABOR MARKET

With the cost of a college education soaring ever higher, it's hardly surprising that roughly half of students entering college today do so at a low-cost community college. Many critics have charged, however, that such two-year colleges provide inferior educations that aren't worth the investment.

Evidence from the marketplace disagrees. A new National Bureau of Economic Research study not only confirms earlier findings that those who completed one or two years of college earn more than high school graduates. It also finds that this is as true for former students of two-year colleges as for those who studied at four-year schools.

In the study, which examined how much two- and four-year college students in the 1970s were earning in 1986, economists Thomas J. Kane and Cecilia Rouse found no significant difference in the wages of former students with similar abilities and backgrounds who had completed a similar number of credits. On average, two-year and four-year college students both earned about 5% more than high school students for every year of credits completed.

Kane and Rouse conclude that going to college pays off about the same whether one attends a two-year or four-year institution. At either type of institution, the more semesters of study a student successfully completes, the higher his eventual earnings.GENE KORETZ


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus