The Returns to Education and Training in the Sub-Baccalaureate Labor Markets: Evidence from the Survey of Income and Program Participation, 1984-1990

W. N. Grubb

The value of formal schooling in increasing employment opportunities, wages, and earnings has been apparent for a long time. Both certificate and Associate degrees increase the earnings of those who receive them--not, of course, by as much as a baccalaureate degree that requires between two and four times as many credits, but still by substantial and statistically significant amounts. However, the value of education in community colleges and technical institutes has been unclear because of the lack of appropriate data. This publication analyzes data and estimates the benefits of different levels of education. The analysis also looks at other variables that might explain variation in earnings, including race and ethnicity, family background, region of the country, and several measures of labor market experience.

MDS-765 / June 1995

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