Summary:
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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