Degrees of Opportunity: Lessons Learned from State-Level Data on Postsecondary Earnings Outcomes
Key Points
- Despite a national emphasis on the role of the bachelor’s degree for economic success, many associate and certificate programs provide valuable routes into the middle class.
- Majors matter a great deal to postcollege earnings—no matter the degree level—and skills-oriented programs in health, engineering, and other technical fields are usually more remunerative than programs in traditional academic fields.
- State flagship universities offer many opportunities for employment with high earnings, but valuable programs exist at regional universities and community colleges as well.
Executive Summary
For the past several decades, the nation has operated under a simple principle: The surest path to labor-market success is through a bachelor’s degree at a four-year college or university. Annually, American postsecondary institutions grant far more bachelor’s degrees than associate degrees or nondegree certificates. While on average bachelor’s degree holders earn more than those with sub-baccalaureate credentials (associate degrees, certificates, and apprenticeships), student earnings vary widely based on the degree pursued, the major studied, and the school attended.
To explore that variation, we use state administrative data from College Measures to calculate five-year earnings and expected 20-year return on investment for students completing bachelor’s, associate, certificate, and apprenticeship programs in specific fields of study from public higher education institutions in Florida, Texas, and Tennessee. We draw three main lessons:
First, many associate degree and certificate programs offer valuable routes into the middle class.