For our group titled - Postsecondary Completion, this is an interesting title for discussion. The following is exercpted from the OVAE Connection Issue 168 from September 19, 2013. As you read the report, it mentions that dropping out of college is certainly not advised but going to college has a better return-on-investment than not attending college at all and better employment outcomes do correspond with some college education. This report also solidifes the importance of college and career readiness for our students. Your thoughts?
"At a time when the benefits of going to college are being questioned more than at any other in recent years The Hamilton Project at The Brookings Institution recently published Is Starting College and Not Finishing Really That Bad? by Michael Greenstone and Adam Looney. This study examines employment and lifetime earnings outcomes for students who begin college but do not finish within the larger context of students with varying levels of education attainment—from less than high school to professional degrees.
There has been much discussion lately about students who begin college but do not finish—especially in relation to concerns about student debt and college costs. In general, Greenstone and Looney note, workers with more education are employed at higher rates and have higher earnings than workers with less education. They point to previous research that shows that the returns to two- and four-year college degrees are substantial.
But, despite the public concern about students who begin college do not attain their degrees, this study suggests that these students may still reap benefits. Using recent employment data, the authors establish that more education does correspond to better employment outcomes, even for those who report some college but no degree. The authors also focus on whether starting college but not completing a degree is financially beneficial for these students. They find that the lifetime earnings of such students are approximately $100,000 higher (present value) than those of their peers who pursue no education beyond high school. Using rate of return on investment as the measurement criterion, the authors’ analysis shows that “getting some college education is an investment with a return that exceeds the historical return on practically any conventional investment, including stocks, bonds, and real estate.” The authors, however, observe that the returns for students who achieve either an associate’s or a bachelor’s degree are the highest. Specifically, “the annual rates of return of investing in an associate’s or bachelor’s degree are two or three times higher than those from alternative investments, including stocks, bonds, gold, treasury bills, and the housing market.” Thus, it is clear that in the current situation more education is advantageous with regard to both being employed and to whether or not students attain their degrees.
This contextualized study is noteworthy primarily for the emphasis it places on the benefits of attending college but not completing a degree."
Priyanka Sharma