ERIC ED557992: Community College Contributions. Policy Brief 2013-01PB

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by  ERIC

ACKNOWLEDGMENTS
We appreciate the input we received on earlier versions of the manuscript. We take responsibility for the final product,
however; any errors are our own. We would also like to thank Lumina Foundation for their support of prior policy briefs.
AbOuT ThE AuThOr
Christopher M. Mullin is the program director for policy analysis at the American Association of Community Colleges.
Kent Phillippe is the associate vice president for research and student success at the American Association of Community
Colleges.
PrEfErrED CiTATiON
Mullin, C. M., & Phillippe, K. (2013, January). Community college contributions (Policy Brief 2013-01PB). Washington, DC:
American Association of Community Colleges.
For more information, contact
Christopher M. Mullin
Program Director for Policy Analysis
American Association of Community Colleges
One Dupont Circle, NW, Suite 410
Washington, DC 20036
Phone: [phone], ext. 258
E-mail: [email protected]
COPyriGhT
2013 © American Association of Community Colleges
Photocopying for nonprofit educational purposes is permitted.
CONTENTS
Executive Summary 4
Introduction 5
Creative Destruction Leads to a Churn of Skills Needed by the
5
Workforce
The Wage Premium Associated with Educational Attainment
5
Continues to Increase, on Average
Low-Income Students Have an Increasingly Tough Road to
Economic Stability 6
Employer-Provided Training May be Hard to Access 6
The Role Community Colleges Play in Filling the Need for College-Educated
6
workers
7
The Launching Pad
12
The (Re)Launching Pad: On-Demand Knowledge and Skills
13
A Local Commitment
14
Aligning Funding for the Future Workforce
16
Moving Forward
Notes 17
References 19
Appendix 23
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American Association of Community Colleges—Policy Brief 2013–01PB

Low-Income Students Have repayment will lower disposable continually having both to gain the
an Increasingly Tough Road to income compared to a wealthy education and training needed to
Economic Stability student who does not need to take enter the job and to progress within
out or repay a loan. a career. While workforce-oriented
There is an intergenerational
opportunities are available in other
aspect to social mobility. A study Employer-Provided Training May
sectors of postsecondary education,
of industrialized countries shows be Hard to Access
they are especially available at
a correlation of 0.50 (scale 0
community colleges.
In 1980, entry-level employees
to 1, with 1 the strongest) for
received 2.5 weeks of training on the
intergenerational earnings (the The Role Community Colleges
job. The last time the U.S. Department
amount of earnings associated Play in Filling the Need for
of Labor examined employer-provided
with one’s parents) in the United College-Educated Workers
training, it found that employers
States as compared to 0.15 in
provide training for 90% of those
Denmark (Carville & Greenberg, Community colleges enrolled 8
with a bachelor’s degree or higher as
2012). Furthermore, wealth million students in fall 2011 in
compared to 70% for those with some
makes a difference in one’s credit-bearing courses (43% of
college (associate degree, certificate,
level of educational attainment. all undergraduate students), in
or college without a credential), a
Academically advanced students addition to an estimated 5 million
finding echoed by Carnevale, Smith,
from low-income backgrounds students in noncredit courses.
and Strohl in 2010.
are less likely to earn a bachelor’s Community colleges also contribute
degree than are academically The findings presented herein to building and revitalizing local
disadvantaged students from suggest that the churn associated communities. Simply put, America’s
high-income backgrounds (Roy, with an economy fueled by creative community colleges are the
2005). In addition, if a low-income destruction places the workforce brokers of opportunity (American
student has to borrow money to of the future in the position of Association of Community Colleges
attend college, his or her monthly [AACC], 2012b) for a stronger
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American Association of Community Colleges—Policy Brief 2013–01PB
middle class and more prosperous is two overlapping bell curves (see college movement in three ways:
nation. Furthermore, while 30.3 Figure 2). In other words, it is a
1. The community college as
million workers have attained as reality that a portion of those with
a launching pad. Community
their highest level of education credentials requiring a lesser level of
colleges serve as a starting
a subbaccalaureate credential postsecondary education attainment
point for students in terms
(certificate or associate degree) by may have higher fiscal returns than
of educational progression—
2010, some 37.3 million workers will their more-educated peers. To
the lockstep mentality that
have a bachelor’s degree, master’s be specific, 23% of bachelor’s degree
dominates considerations of
degree, professional degree, holders earn less than those with
educational attainment. They
or doctoral degree. Clearly, the a license or certificate but not an
also accelerate learning through
workforce comprises workers that associate degree, and 25% of those
early college experiences and
community colleges educate and with bachelor’s degrees earn less
transfer opportunities.
train.2 (This is not to mention the than those with associate degrees
other roles community college play (Carnevale, Rose, & Cheah, 2011).
2. The community college as a
in retraining and upskilling, as will Earnings differences are largely due
(re)launching pad. Community
be discussed later in this brief.) to differences in college majors, the
colleges serve as providers of
industry of employment, gender, and
knowledge and skills to members
While data may be used to support
race or ethnicity (Carnevale, 2011).
of the community when they
suggestions that community
need them, and in ways that they
colleges are not dropout factories, In terms of economic, labor-market
need them, often for those who
they often portray only part returns for students attending
have already been successful in
of the picture. For example, community colleges specifically,
college.
graduation rates of a small cohort Belfield and Bailey (2012) reviewed
of beginning students are often twenty studies on the earnings effects
3. The community college as a
used to drive perceptions of of a community college education,
local commitment. Community
community colleges: namely, that concluding, “[T]his review affirms that
colleges serve local purposes,
roughly 20% of students graduate there are strong positive earnings
focusing on the needs and
within 2 years of entering. A more gains from community college
demands of the communities
complete examination portrays attendance and completion, as well
they serve.
a much different picture (see as progression to a 4-year college” (p.
below, Table 2). Specifically, 62% 60). In addition, the latest national The Launching Pad
of those students are successful estimate of the return on investment
For 43% of all undergraduates,
after 6 years: 43.8% had earned to state and local governments from
the plurality of minority students
a credential and 18.6% were still investing in community colleges in
enrolled. 2007 was 16.1%.3 and the majority of low-income
students, community colleges
The labor market and nonlabor While broad-brush pictures of the serve as a launching pad for greater
market value of education has community college contribution are educational attainment and related
repeatedly been detailed in broad important, the community college benefits of social mobility and
brushstrokes (Baum, Ma, & Payea, is an intricate institution offering economic security (AACC, 2012a).
2010; Greenstone, Harris, Li, Looney, pathways to credentials, degrees, This section outlines two ways
& Pataschnik, 2012; U.S. Department and retraining opportunities for community colleges propel student
of Treasury, 2012; Zaback, Carlson, those with and without college and community prosperity.
& Crellin, 2012). Our knowledge, credentials; they operate as engines
Progression of Educational
however, is becoming increasingly of economic development. To
Attainment
refined. Take, for example, median date, the multifunctional nature
earnings that, while informative, of the community college mission
Success in postsecondary education
do not reflect the distribution limited our ability to understand
is often measured as a bachelor’s
associated with any set of earnings these colleges’ role in sustaining
degree. However, there are viable
data; the distribution of earnings the nation’s general welfare. This
college-level outcomes prior to the
matter. If we took two distributions, brief provides a better opportunity
bachelor’s degree including, but not
one for associate degrees and to understand community colleges’
limited to, certificates and associate
another for certificates, and graphed role, and frames private and public
degrees (see Figure 3).4
them together, what we would find economic returns of the community
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American Association of Community Colleges—Policy Brief 2013–01PB
It is a mistake to invalidate the
success of students, many of whom
overcome substantial risk factors
for success, if it does not directly
match the reader’s conception of
what a college education represents
(i.e., a bachelor’s degree). At the
same time it is inconsistent with
the role community colleges play in
economic mobility and social justice
to assert that continual educational
attainment is not an important
component of a family-sustaining
wage and intergenerational
opportunity; all students must be
prepared to embark on the next
step of educational attainment
should they choose to pursue it.
This section outlines the value, in States lack basic literacy and better in college: 35.5% earned
terms of private and social returns, numeracy skills (Kanter, 2012).5 a credential and 19.6% were still
associated with each level of enrolled after 6 years (see Table 2).
There is a need to increase the
attainment along the educational
attainment of those without a While the low success rates of
progression continuum. We focus
high school credential. The first students who enter college without
on the progression of educational
step is a high school diploma or its a high school diploma, certificate,
attainment to underscore the
equivalent. or equivalency is not surprising,
importance of completion at each
it is also not acceptable. There
stage of educational attainment.
For those students who initially
are efforts under way, such as
enrolled in a community college
Earning a High School Credential. Washington’s Integrated Basic
in the 2003–04 academic year
By 2018, 28% of all jobs will require Education and Skills Training
without having earned a high
a high school diploma (Carnevale, (I-BEST) and Minnesota’s FasTRAC
school credential, only one in five
Smith, & Strohl, 2010). In fall 2010, program to increase success by
earned a credential or was still
7.4% of adults aged 18 to 24 did contextualizing learning for students
enrolled after 6 years. Conversely,
not have a high school diploma or who show an ability to benefit
and unsurprisingly, students who
its equivalent (Snyder & Dillow, from postsecondary education.
entered a community college with
2012). In addition, approximately Elementary and secondary
a high school diploma fared much
93 million adults in the United schools have made the admirable
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American Association of Community Colleges—Policy Brief 2013–01PB
commitment to implement economic contribution of A1). Furthermore, certificate
common core standards and have certificates is difficult. Reasons for completers were the most likely to
partnered with higher education this include, but are not limited to, believe their education helped them
institutions to reconceptualize the that they are not currently included advance in their career, be satisfied
way instruction can be delivered in international comparisons of with their job, and believe they
to close persistent attainment and educational attainment (Mullin, had opportunities to apply their
achievement gaps. Additionally, 2010) and only one government education at work.
691,296 students took the General survey contains information on
The Impact of Earning an Associate
Educational Development (GED; certificate attainment (Carnevale,
Degree. The next step on the path
GED Testing Service, 2012) test in Rose, & Hanson, 2012).7 An analysis
of educational progression is the
2011, many at community colleges. by Carnevale, Rose, and Hanson
associate degree. On average, the
The reasons a student takes the (2012) suggests that our nation’s
benefits of continued educational
GED test are numerous, but the educational attainment would
progression accrue to the individual
three most frequently cited are for increase 5% if certificates (with
and society on earning an associate
personal satisfaction (47.8%), to get earnings 20% above those of the
degree after having earned a
a better job (38.6%), and to attend average high school graduate) were
certificate. By 2018, 12% of all jobs
a community college (31.0%; GED counted. Additionally, like other
will require an associate degree.
Testing Service, 2012). forms of educational attainment,
certificates may not be the “highest
Associate degrees are an unsung
There are substantial economic
level attained” and therefore may
hero of postsecondary education.
returns to increasing an individual’s
have been earned but are trumped
In fact, between 1970 and 2005
level of attainment to obtaining
by subsequent levels of education.
associate degrees were the fastest-
a high school equivalency. Data
growing type of degree earned
indicate the financial impact of An estimate of the financial
(Hauptman, 2011), growing
becoming a high school graduate, impact on the student of earning
at twice the rate of bachelor’s
or its equivalent, on the student is a certificate, by equating it to
degrees. Furthermore, 25% of
a 41% increase in median weekly the level of “some college,” is a
those with bachelor’s degrees
earnings compared to those 13% increase in median weekly
earn less than those with associate
without a high school diploma, a earnings compared to those with
degrees (Carnevale, Rose, &
decrease in unemployment from a high school diploma, a decrease
Cheah, 2011). More than 630,000
14.1% to 9.4%, and a 54% increase in unemployment from 9.4% to
associate degrees were awarded
in taxes paid (see Table 1). 8.7%, and an 18% increase in taxes
by community colleges in 2009–10
paid (see Table 1).8 The economic
The Impact of Earning a (Mullin, 2011), representing 76% of
returns of these awards may be
Certificate. In 2018, 17% of all all associate degrees in 2009–10.
substantial: 23% of bachelor’s
jobs will require a certificate or
degree holders earn less than those
There is financial impact of earning
some college (Carnevale, Smith,
with a license or certificate but not
an associate degree on the student
& Strohl, 2010). Certificates
an associate degree (Carnevale,
and on society. In 2011, median
have a substantial place in
Rose, & Cheah, 2011).
weekly earnings increased 7%,
the postsecondary education
unemployment decreased from
landscape. Community colleges, Community colleges, however, are
8.7% to 6.8%, and taxes paid
and higher education in general not the only sector that awards
increased 8% increase when
(Horn & Li, 2009), have witnessed a certificates. A study published by
students moved from earning a
substantial increase in certificates the National Center for Education
certificate to earning an associate
earned by students of color. In Statistics (NCES; Ifill & Radford,
degree (see Table 1).
2009–10, community colleges 2012) examined workforce
awarded more than 425,000 outcomes for students who started
Like certificates, community
certificates, constituting 40% at community colleges, for-profits,
colleges do not monopolize the
of all credentials they awarded and private institutions. It found
associate degree market. A recent
(Mullin, 2011). In terms of median earnings for certificate
study published by the NCES (Ifill
all postsecondary education, completers starting at community
& Radford, 2012) found associate
community colleges awarded 38% colleges were the highest of all
degree earners who started at a
of all certificates in 2009–10.6 comparable sectors of higher
community college, compared to
education (see appendix, Table
other institution types, earned
Regrettably, estimating the
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American Association of Community Colleges—Policy Brief 2013–01PB
more, and were the most likely Accelerating Success Engaging Students in High
to believe their education helped School. Community colleges offer
There is a pressing interest to
them advance in their career and opportunities for high school
get students to postsecondary
to be satisfied with their job (see students to engage in college-level
credentials more quickly (Complete
appendix, Table A2). work in a number of ways including,
College America, 2011) to avoid
but not limited to, dual credit, dual
The Impact of Earning a having life get in the way and to
enrollment, and early college high
Bachelor’s Degree. As demand for optimize the long-term economic
schools. Early college enrollments
postsecondary education increases benefits realized with educational
are becoming a larger part of
and the capability of institutions attainment (Bosworth, 2010).
community college student bodies.
in other sectors to meet the need A student who earns a college
In fall 1993, 1.6% of the community
diminishes, community colleges are credential at the age of 22 has
college student body was under the
again stepping in to meet the needs greater lifetime earnings and
age of 18, compared to 7% in fall
of their communities. In 2009–10, public contributions than does a
2011 (Mullin, 2012b).11 Assuming
public community colleges awarded student who earns the same college
each student took only one course
8,466 bachelor’s degrees. credential at the age of 40. While
at a community college in fall 2011,
community colleges are engaged
the 850,000 students enrolled in
The financial impact of earning a
in innovating a number of ways to
community colleges represent a
bachelor’s degree on the student
reduce time to degree within their
savings of $253 million to students.12
is a 37% increase in median
institutions, they also support other
weekly earnings, a decrease in
sectors of education to accelerate Taking college-level courses in
unemployment from 8.7% to 6.8%,
student success.10 The supportive high school not only saves money,
and a 45% increase in taxes paid
role of the community college is but also contributes to college
as compared to associate degree
operationalized primarily in two completion. A greater percentage of
earners (see Table 1).
ways: through engaging students students who earned credits in high
in high school, and through the school and began at a community
The data provided in this section
transfer function of the community college attained a postsecondary
demonstrate the private and social
college. credential within 6 years after high
economic benefits associated with
reaching each level of attainment.9
In addition to the economic rewards,
it may be worth noting that success
breeds success, and the act of
acknowledging success through the
awarding of a credential signifies the
value of the student and validates
his or her efforts. While the goal
is to provide the opportunity for
all students to excel at all levels of
education, waiting to validate the
effort and experiences of students
with multiple risk factors associated
with completion until they earn a
bachelor’s degree many years later
is outdated and invalidating.
The success of community colleges
may be told in terms of credential
attainment, as this section has done,
but that is only one part of the diverse
community college mission. A less-
acknowledged function of community
colleges is the way by which they
accelerate student success.
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