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The Vertical Transfer Penalty Among Bachelor's Degree Graduates

Sun, April 7, 8:00 to 9:30am, Sheraton Centre Toronto Hotel, Floor: Lower Concourse, Grand Centre

Abstract

Numerous studies have investigated the consequences of vertical transfer on students’ higher education outcomes in comparison to ‘native four-year students,’ those who went straight from high school into a bachelor’s degree program. However, the long-term labor market outcomes for vertical transfer students and native four-year students are understudied. Using nationally-representative data from the National Survey of College Graduates 2015, we estimate the relationship between starting in a community college (vs. a four-year college) and later employment and post-college earnings in various regression approaches that correct for selection bias and over-dispersion. We find a significant earnings disadvantage (roughly -14% annually) for college graduates who started in a two-year institution, regardless of college major. No effect was found on graduates’ employment chances.

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