Just the Facts, Ma’am: Postsecondary Education and Labor Market Outcomes in the U.S.

The authors reviewed summary evidence on postsecondary and labor market outcomes using two nationally representative sources of data: the Survey of Income and Program Participation and the National Educational Longitudinal Study. "Both sources contain extensive microdata on individual demographics; educational attainment, including occupational certificates; field of study on certificates and AA degrees, as well as on BA degrees and higher; and on labor market outcomes….After presenting the basic facts, [the authors] briefly reviewed their consistency with the enormous existing body of research literature, and then concluded with a summary of what [they] have learned and what remains to be explored” (p. N/A-1). (Abstractor: Author and Website Staff)

“Findings can be summarized as follows: 1. Educational attainment has risen modestly among young adults in the past two decades, with gains in BA attainment in the 1990s and more in certificate and AA attainment since 2000. 2. Postsecondary educational attainment has risen in response to the Great Recession. 3. Race and gender gaps in educational attainment remain strong. 4. Completion rates at 2-year colleges are much lower on average than at 4-year schools, but large gaps by race, income and achievement persist at the latter. 5. Achievement gaps by race, gender, and family background contribute to the gaps in postsecondary attainment across these groups. 6. Those with higher achievement earn higher educational credentials and are more likely to concentrate in the fields that are well-compensated. 7. Gender gaps also persist in fields of study among those obtaining any particular certification. Males are more likely than females to obtain certification in engineering or technical fields; women are more likely to do so in health and education. 8. There appear to be returns (in terms of higher employment and wages) to the attainment of all certifications, including certificates and AAs, for all groups. 9. Labor market returns also vary by field of study. Those in technical areas generally earn higher wages relative to other fields. 10. High school achievement explains much (though not all) of the gender and race gaps we find in BA attainment and race gaps in annual earnings. The continuing labor market gains for those with sub-BA degrees and certificates, relative to a high school diploma, suggest that we have not yet reached the point of greatly diminishing returns to these credentials. Given the relatively low rates of credential completion in community colleges for all groups, policies to improve completion at this stage would remain welcome. But, in addition, it seems very unlikely that choices of field of study at both 2-year and 4-year institutions are fully informed by the facts when they are made. Accordingly, better labor market information on returns to different fields should probably be made available at the postsecondary level, and earlier as well” (p.30-32). (Abstractor: Author)

• Last Updated:
• Created:
• Resource Publication Date: 2013
• Author(s): Holzer, Harry J.; Dunlop, Erin
• Organizational Author(s): Georgetown University and American Institutes for Research (AIR)
• Funding Source: Self-funded
• Resource Availability: Publicly available
• Posted by: Melissa Mack
• Posted in: Workforce System Strategies