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Career technical education and labor market outcomes

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13 Feb 2023

Career technical education and labor market outcomes

This paper estimates the earnings returns to vocational, or career technical, education programs in
the nation’s largest community college system. While career technical education (CTE) programs
have often been mentioned as an attractive alternative to four-year colleges for some students, very
little systematic evidence exists on the returns to specific vocational certificates and degrees. Using
administrative data covering the entire California Community College system and linked administrative
earnings records, this study estimates returns to CTE education. We use rich pre-enrollment earnings
data and estimation approaches including individual fixed effects and individual trends, and find average
returns to CTE certificate and degrees that range from 12 to 23 percent. The largest returns are for
programs in the healthcare sector; among non-health related CTE programs estimated returns range
from five to ten percent.

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Dipak Dhande

12 mon ago

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