What's the value of an associate's degree?: the return on investment for graduates and taxpayers

Given the high cost associated with earning a degree - and its frequently accompanying debt burden - students, parents, policymakers, and the media are questioning the value of higher education. For this report, the authors investigated one aspect of the value of higher education by looking at the labor market success of students who have graduated with an associate's degree from a community college as their highest academic credential. Analyzing data from the US Department of Education supplemented by data from PayScale, Inc. - a company that collects and analyzes salary and career data...  [+] Show more

Given the high cost associated with earning a degree - and its frequently accompanying debt burden - students, parents, policymakers, and the media are questioning the value of higher education. For this report, the authors investigated one aspect of the value of higher education by looking at the labor market success of students who have graduated with an associate's degree from a community college as their highest academic credential. Analyzing data from the US Department of Education supplemented by data from PayScale, Inc. - a company that collects and analyzes salary and career data reported by individuals and employers - the authors estimated the added wages earned by graduates from nearly 600 community colleges and estimated the return on investment (ROI) for the graduates. In addition, the authors assessed the degree to which taxpayers benefit from the added wages that graduates with associate's degrees typically earn compared with wages of workers who have earned only a high school diploma.

Edited excerpts from publication.