Are the Tickets for Everyone? Heterogeneity of Economic Rewards for Associate's Degree Completion

Associate's degree completion is billed as the quickest way to upskill the workforce and a ticket to the middle class. Yet 35 million Americans leave college without a degree. Black and Hispanic students are more likely than White and Asian students to leave college. We examined whether economic benefits differ between those whose highest level of education is “some college, no degree (SCND)” compared to an associate's degree by analyzing interaction effects among race/ethnicity, sex, citizenship, and nativity. Using data from the Current Population Survey 2019 Annual Social and Economic Supplement, we employed regressions to examine heterogeneity in economic rewards. We also used propensity score matching to estimate causal treatment effects using observational data. On average, associate's workers reaped more economic rewards than SCND workers. In almost every category, the advantage of completing the associate's degree was lost when the worker held at least one socially disadvantaged identity. Economic disadvantage was multiplied for some workers who had more than one disadvantaged identity. Our findings support the economic value of completing an associate's degree and unmask the disparate labor market outcomes for workers of diverse races/ethnicities, sexes, and nationalities.