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The effect of promoting access to community colleges on educational and labor market outcomes

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  • Kim, Sie Won

Abstract

Community colleges offer an affordable postsecondary education and serve as a stepping stone to a four-year college degree. However, it is unclear how increased access to community colleges affects educational and labor market outcomes. To investigate this issue, I estimate a structural model of employment and college choices and evaluate policy interventions designed to promote access to community colleges: tuition subsidies and easier transition from two- to four-year colleges. I find that tuition subsidies at two-year colleges increase enrollment in community colleges and the average lifetime income but decrease four-year college degree attainment. In addition, I show that the transfer policy decreases enrollment in both two- and four-year colleges but increases bachelor’s degree attainment for high-ability students.

Suggested Citation

  • Kim, Sie Won, 2023. "The effect of promoting access to community colleges on educational and labor market outcomes," Labour Economics, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:labeco:v:85:y:2023:i:c:s0927537123001136
    DOI: 10.1016/j.labeco.2023.102438
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    More about this item

    Keywords

    Community college; Tuition subsidy; Dynamic discrete choice model;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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