However, disparities persist in college access, employment outcomes, earnings.
CHICAGO – The value of a college education has been under scrutiny in recent years: Does college still lead to better economic outcomes? A new report from the Illinois Workforce & Education Research Collaborative, part of the University of Illinois System’s Discovery Partners Institute, shows that it does — but work is still needed to broaden the access to that payoff.
IWERC partnered with the Illinois State Board of Education, the Illinois Student Assistance Commission, the Illinois Department of Employment Security and the UChicago Consortium on School Research to examine the employment outcomes of Illinois high schoolers several years after graduation. This research used a unique data set called the Illinois High School 2 Career, which tracks students from high school graduation through postsecondary education/training (if any) and into the workforce.
The researchers set out to describe the pathways taken by students from different economic backgrounds after high school and how those pathways related to their later economic outcomes. The goal was to understand how the state could support all students, including students from disadvantaged backgrounds, in accessing stable and well-paying jobs.
Key findings:
- On average, students who earned higher educational degrees went on to earn more. This was true for students of all economic backgrounds.
- Specific degree program and industry mattered — some were higher-earning than others for all student groups.
- Students from lower-income families were less likely to attain higher degrees or work in higher-earning industries. This suggests an urgent need to support students from lower-income families in accessing these important levers of economic success.
- Even with the same educational degree, degree program or industry of employment, students from lower-income families earned less than those from higher-income families, on average. This pattern suggests the presence of entrenched societal issues that limited the upward economic mobility of economically disadvantaged students.
“The research shows that the best path to attain economic mobility is still a college degree,” State Superintendent of Education Tony Sanders said. “Even factoring in student debt, pursuing a college degree is the surest way for students to access higher income brackets — as long as they finish. We need to continue to reinforce to students the value and importance of higher education to achieving their goals — and at the system level, continue to make learning and instruction relevant, engaging and equitable for all students. Walking students through the High School 2 Career website, which shows the real outcomes of real Illinois students, is a great way for teachers, counselors and parents or guardians to help students make informed choices about their paths after school that align with their life goals.”
“This new report confirms previous research by Harvard economist Raj Chetty and others showing that family income levels during childhood are predictive of future economic outcomes, but they aren’t determinative,” said Sarah Cashdollar, associate director of IWERC and lead author of the report. “It’s useful to see how college access can contribute to upward mobility but also sobering to see how far we still have to go.”
“This new report bears out what national data continue to show: that the higher the postsecondary degree level, the higher the income. Perhaps more important, it shows that achieving any postsecondary attainment, from a credential to a degree, will, on average, increase earning power over a high school degree alone,” ISAC Executive Director Eric Zarnikow said. “But the report also tells us that there is work to do, including helping students understand the different earning potential of certain programs and careers. ISAC is focused not only on providing the financial aid that can help students access postsecondary education, but also in helping to ensure that all students have the resources and support they need to make informed choices about college and career.”
“We’re proud to have been part of this study, which made use of an important and novel data collaboration between multiple state agencies,” IDES Director Ray Marchiori said. “These data can also be used to help students and families select the best educational and occupational path for their economic success.”
The full report is available here. A subsequent report is forthcoming on the most effective pathways for students from lower-income backgrounds to reach higher-earning occupations.
For additional report findings, contact Sarah Cashdollar at secash@uillinois.edu.