The Effect of Promoting Access to Community Colleges on Educational and Labor Market Outcomes

43 Pages Posted: 26 Feb 2021 Last revised: 4 Aug 2022

See all articles by Sie Won Kim

Sie Won Kim

Texas Tech University - Department of Economics

Date Written: August 3, 2022

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 two 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.

Keywords: community college, tuition subsidy, dynamic discrete choice model

JEL Classification: I22, I26, J24

Suggested Citation

Kim, Sie Won, The Effect of Promoting Access to Community Colleges on Educational and Labor Market Outcomes (August 3, 2022). Available at SSRN: https://ssrn.com/abstract=3791628 or http://dx.doi.org/10.2139/ssrn.3791628

Sie Won Kim (Contact Author)

Texas Tech University - Department of Economics ( email )

Box 41014
Lubbock, TX 79409
United States

HOME PAGE: http://siewonkim.com/

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