The value of educational degrees in turbulent economic times: Evidence from the Youth Development Study

Abstract

Rising costs of higher education have prompted debate about the value of college degrees. Using mixed effects panel models of data from the Youth Development Study (ages 31–37), we compare occupational outcomes (i.e., weekly hours worked, earnings, employment status, career attainment, and job security) between educational attainment categories within year, and within categories across years, from 2005 to 2011, capturing the period before, during, and in the aftermath of the Great Recession. Our findings demonstrate the long-term value of post-secondary degrees. Bachelor’s and Associate’s degree recipients, while experiencing setbacks at the height of recession, were significantly better off than those with some or no college attendance. Vocational-Technical degree holders followed a unique trajectory: pre-recession, they are mostly on par with Associate’s and Bachelor’s recipients, but they are hit particularly hard by the recession and then rebound somewhat afterwards. Our findings highlight the perils of starting but not finishing post-secondary educational programs.

Levelling the playing field? Active labour market policies, educational attainment and unemployment

“…The weaker labour market position of the lesser educated makes them more vulnerable to the consequences of economic shocks. During the Great Recession of 2008, lesser educated workers were indeed more susceptible to the economic shocks than the higher educated (Verick and Islam, 2010;Vuolo et al, 2016). Having a higher probability of working in sectors most affected by the economic shock (e.g.…”

Youth and the Great Recession: Are values, achievement orientation and outlook to the future affected?

“…The recent global economic downturn has undermined employment prospects for young people and is also likely to undermine their confidence, self‐perceptions, values, and outlook to the future. Economic setbacks and uncertainty have mounted among all youth, including seemingly advantaged college students and among those who hold a postsecondary degree qualification (Fogg & Harrington, ; Schoon & Bynner, in press; Vuolo, Mortimer, & Staff, ), yet there is relatively little evidence on the impact of the Great Recession on young people's achievement orientations, their values, and behaviours.…”

Educational Attainment and Nonwage Labor Market Returns in the United States

“…More recent research investigates a smaller set of employment-related outcomes and their implications for young Americans during the 2008 recession. Vuolo, Mortimer, and Staff (2016) examined the impact of educational attainment on five occupational outcomes-individuals' current employment status, job security status, career investment status, hours worked, and weekly earnings. Using longitudinal, national data from the Youth Development Study (2005)(2006)(2007)(2008)(2009)(2010)(2011), they found that, despite the challenging labor market, people who earned a bachelor's or associate degree demonstrated higher levels of employment than their peers without a degree.…”