Community Colleges Pave the Way to Upward Economic Mobility for Millions of
Americans, Particularly Low-Income Students
Pursuing Certain Fields Can Significantly Boost Earnings
WASHINGTON, Oct. 20 /PRNewswire-USNewswire/ -- A report released today by
Pew's Economic Mobility Project shows that community colleges are an important
stepping stone for students of all backgrounds, income levels and high school
achievements to improve their economic mobility prospects. Earning a community
college degree boosts earnings by an average of $7,900 annually, an increase
of 29 percent over those with only a high school diploma. For low-income,
high-achieving high school students in particular, community colleges serve as
a springboard to further postsecondary education; more than half eventually
transfer to four-year programs, and three-quarters of those who transfer earn
a bachelor's degree.
Strengthening Community Colleges' Influence on Economic Mobility was authored
by Diana Furchtgott-Roth of the Hudson Institute and Louis Jacobson and
Christine Mokher of CNA.
"With unemployment at its highest point in 30 years, policymakers should look
for ways to broaden the opportunities for high school graduates to have
economic success. Support of community colleges is a key piece of this
puzzle," said Ianna Kachoris, manager of the Economic Mobility Project.
The report found a positive correlation between students' high school grade
point average (GPA) and the likelihood they would enroll and complete
postsecondary education, as well as have higher post-college earnings. Among
students who begin in community colleges, those who had A or B+ high school
GPAs earn an average of $9,600 more per year than those with low high school
GPAs.
Field of concentration, however, is more important than high school GPA in
determining post-college earnings. Lower-performing high school students who
concentrate in higher-return fields (such as health care) in community college
earn $48,000 annually, more than the $44,000 earned by A/B+ high school
students who concentrate in lower-return fields (such as fine arts and
humanities). Yet, only 25 percent of lower-performing high school students
focus on higher-return fields in community colleges, compared to 40 percent of
high-performing high school students--a gap of 15 percentage points.
"It's not surprising that course selection has a strong effect on students'
future earnings," co-author Furchtgott-Roth said. "The study shows that
community colleges have an opportunity to inform students about the economic
returns of various fields of study. In addition, colleges can offer
additional career counseling for students who have financial problems and who
are juggling family and work responsibilities. This information and support
would likely increase rates of credential attainment, graduation, and transfer
to four-year programs."
The authors use a database that includes a detailed history of the education
and post-college earnings of 84,000 Florida students who completed twelfth
grade in 2000 and attended a public college in the state. For the complete
report and more information, please visit www.economicmobility.org.
Comprised of a Principals' Group of experts from the American Enterprise
Institute, the Brookings Institution, the Heritage Foundation, the New America
Foundation and the Urban Institute, with guidance from an Advisory Board of
leading academics and economists, Pew's Economic Mobility Project seeks to
investigate the health and status of the American Dream.
The Pew Charitable Trusts (www.pewtrusts.org) is driven by the power of
knowledge to solve today's most challenging problems. Pew applies a rigorous,
analytical approach to improve public policy, inform the public and stimulate
civic life. We partner with a diverse range of donors, public and private
organizations and concerned citizens who share our commitment to fact-based
solutions and goal-driven investments to improve society.
SOURCE Pew Charitable Trusts
Samantha Lasky of Pew Charitable Trusts, +1-202-540-6390,
slasky@pewtrusts.org
