Labor Market Returns to Sub-Baccalaureate Credentials: How Much Does a Community College Degree or Certificate Pay?

This study provides one of the first estimates of the returns to different types of community college credentialsshort-term certificates, long-term certificates, and associate degreesacross different fields of study. We exploit a rich data set that includes matched, longitudinal college transcripts and Unemployment Insurance records for students who entered a Washington State community college in 2001-2002. Our findings based on an individual fixed effect model suggest that earning an associate degree or a long-term certificate is associated with increased wages, particularly for women. We find that there is greater variation in returns to wages by the field of study than by degree type.