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Prior research has consistently shown college degrees increase one’s earnings and employment (e.g., Jepsen, Troske, & Coomes, 2014; Oreopoulos & Salvanes, 2011). Furthermore, the wage premium associated with college education has seen substantial growth over recent decades (Ma, Pender, & Welch 2019). Over the past two decades, policymakers have initiated policies aimed at improving postsecondary access and degree attainment. One of such initiatives is dual credit or dual enrollment, which generally refers to an opportunity for high school students to enroll in college-level courses and earn college credits. As of 2022, 48 states and the District of Columbia had established state-level dual enrollment policies.
Despite the growing prevalence of dual credit programs, our understanding of their potential to improve postsecondary outcomes remains limited. Most prior studies on dual enrollment rely on ordinary least squares (OLS) regression or propensity score matching to identify the impacts of dual enrollment on postsecondary outcomes. However, these approaches may yield biased estimates due to unobserved differences between students who participate in dual credit programs and those who do not. Only few studies have employed a quasi-experimental design that offers more robust causal evidence.
To address this gap, we leverage a plausibly exogenous source of variation in dual enrollment participation induced by Kentucky’s statewide dual credit policy. Introduced in 2015, the policy was designed to increase participation among high school students by restricting eligibility to those with a cumulative GPA of 2.5 or higher. Following its implementation, dual enrollment rates rose sharply for students above the GPA threshold, while participation remained relatively stable for students below it. We use this policy-based eligibility rule as an instrumental variable to estimate the causal effects of dual enrollment on postsecondary outcomes. Specifically, we examine college enrollment within one year of high school graduation, persistence into the second year, and degree completion within four years.
Our primary data source is Kentucky’s Longitudinal Data System (KLDS), supplemented with the United States Census Bureau’s American Community Survey (ACS) five-year estimates to control for other economic or social factors that may influence postsecondary outcomes. The sample for this study includes high school seniors from public schools in Kentucky, spanning the academic years from 2013-14 to 2018-19. This period covers three years before and after the introduction of the dual credit policy, extending to the 2022-2023 academic year for postsecondary outcomes. This timeframe captures three years before and after the implementation of Kentucky’s dual credit policy, allowing for a comprehensive analysis of policy impacts. Findings from this research will shed light on the efficacy of dual credit programs as a strategic tool for improving postsecondary outcomes.
References
Jepsen, C., Troske, K., & Coomes, P. (2014). The labor-market returns to community college degrees, diplomas, and certificates. Journal of Labor Economics, 32(1), 95-121.
Ma, J., Pender, M., & Welch, M. (2019). Education pays 2016: the benefits of higher education for individuals and society. College Board.
Oreopoulos, P., & Salvanes, K. G. (2011). Priceless: the nonpecuniary benefits of schooling. Journal of Economic Perspectives, 25(1), 159–184.