Do students benefit from going backward? The academic and labor market consequences of four to two year transfer

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Do students benefit from going backward? The academic and labor market consequences of four to two year transfer Vivian Yuen Ting Liu Columbia University Teachers College 2016 AIR Forum June 1 st, 2016

Overview Why is it important? Literature review Conceptual and empirical framework Results Discussion and Conclusion Q & A

Introduction Access to higher educa on guarantee to gradua on 4 year & 6 year graduation rates are 39% and 59% respectively As low as 12% for students with GPA<3.0 in the 1 st term

Students at risk of dropping out First year GPA < 2.0 First year GPA between 2 & 3 The Murky Middle (Education Advisory Board, 2014)

Introduction Access to higher educa on guarantee to gradua on 4 year & 6 year graduation rates are 39% and 59% respectively As low as 12% for students with GPA<3.0 in the 1 st term Seek postsecondary education in community colleges The missing group of students Each year, 16% of 4yr beginning students transfer to 2yr colleges

260,000 237,000

Introduction Access to higher educa on guarantee to gradua on 4 year & 6 year graduation rates are 39% and 59% respectively As low as 12% for students with GPA<3.0 in the 1 st term Seek postsecondary education in community colleges The missing group of students Each year, 16% of 4yr beginning students transfer to 2yr colleges Is this transfer path beneficial to 4yr struggling students? First causal study Distance to the closest 2yr college as instrument variable National data and State administrative data

Previous literature The transfer literature mostly focuses on 2 4 year transfer First 4 2 transfer spotted in the 1950s Rich qualitative literature on 4 2 transfer students characteristics and motivation to transfer

Previous literature Two major motivations to transfer from 4 to 2 yr schools Struggling students seeking to complete postsecondary education High achieving students take 2yr courses strategically to complete 4yr requirement Only 4 studies look at the outcomes of RT students (Hossler et al, 2012; McCormick & Carroll, 1997; Kalogrides & Grodsky, 2011; Yang, 2007)

4 2 year transfer: The good and the bad Advantages Better have a 2 year credentials than none at all Cheaper higher education option More career choices Some technical degrees earn more than some BA degrees Disadvantages Diversion effect Peer and instructor s quality

Empirical Methods Ordinary Least Square Propensity Scores Matching Instrumental Variables

Ordinary Least Square Y t = 4 2,, ѱ d, ϴ c, µ m, Ф s, where X: demographic characteristics, ability controls, geographic controls ѱ d, ϴ c, µ m, Ф s : district, cohort, major, and initial 4yr specific effects SES: county level SES indicators

Ordinary Least Square Stay in 4yr Transfer to 2yr Ordinary Least Square directly compare these two groups.

Propensity Score Matching Stay in 4yr Transfer to 2yr Propensity score matching compares among similar people

Instrumental Variable Approach Stay in 4yr The IV methods approximate a randomized experiment among individuals affected by the IV. Transfer to 2yr

Instrumental Variable Second Stage Y t = (4 2 transfer, X, ѱ d, ϴ c, µ m, Ф s,ses c ) (1) First Stage 4 2tran= = (Distance,X, ѱ d, ϴ c, µ m, Ф s,ses c ) (2) where Distance: miles to the closest 2yr college X: demographic characteristics, ability controls, geographic controls ѱ d, ϴ c, µ m, Ф s : district, cohort, major, and initial 4yr specific effects SES: county level SES indicators

Data Educational Longitudinal Survey of 2002 State administrative data

National Data National representative of 12 th grader in 2004 Include public, non profit and for profit sectors Follow up in 2006 and 2012 Survey of students, parents, institutions High school and college transcripts Zip code

State Data State administrative data Cohort 2005 06, 2006 07 & 2007 08 2yr and 4yr beginning students at public colleges Follow up through summer 2013 Demographic info, transcript, UI records BLS & State DOH County level SES indicators (income, % of drinkers/smokers/teen moms/without insurance/students with free or reduced price lunch at schools)

Final sample Restrictions 1 st term GPA < 3.0 Intent to earn a 4yr degree Enroll full time in only 4yr college in the first term 4 2 transfer students only take classes in fall/spring Final sample targeting struggling students 7,522 students (State), 650 (ELS) 29% have ever taken a 2yr course in fall or spring 10% only took a 2yr course in the summer Balanced sample on pre transfer characteristics

Descriptive Statistics State Data 4 2 transfer Exclusive 4yr 4 2 transfer Exclusive 4yr GPA term 1 <3.0 <3.0 >=3.0 >=3.0 Female 56% 47% 65% 55% Black 25% 30% 28% 21% Hispanic 2% 2% 2% 2% Other Race 3% 3% 3% 3% GPA term 1 2.23 2.25 3.36 3.48 GPA year 1 2.31 2.32 3.09 3.32 Credits earned in year 1 20 21 19 23 High School GPA 2.98 2.96 3.08 3.33 Live in Metropolitian area 62% 63% 63% 65% County household income $ 32,678 $ 31,941 $ 32,289 $ 32,069 Miles to 2yr from HS 14.4 17.5 14.6 17.0 Observation 1913 5609 1561 7309

Descriptive Statistics State Data 4 2 transfer Exclusive 4yr 4 2 transfer Exclusive 4yr GPA term 1 <3.0 <3.0 >=3.0 >=3.0 Last institutions = 4yr school 39% 93% 48% 96% Highest Degree earned in 2013 Certificates 11% 0% 8% 0% Associate Degree 20% 0% 27% 0% Bachelor's Degree 13% 32% 18% 57% Still Enrolled in the 6th year 40% 26% 41% 26% Still Enrolled in the 7th year 24% 12% 21% 12% Employed in the 6th year 83% 77% 83% 74% Employed in the 7th year 85% 79% 85% 76% Wage in the 6th year $18,575 $18,703 $19,485 $21,656 Missing/zero earnings 237 908 188 1,372 Wage in the 7th year $19,1875 $19,970 $20,3692 $23,333 Missing/zero earnings 110 403 91 643 Observation 1913 5609 1561 7309

Timing for 4 2 transfer (state data) (2006 07 & 2007 08 fall entering cohorts) 25% 20% 20% 15% 10% 5% 0% 13% yr 1 spring yr2 fall 10% yr2 spring 14% yr3 fall 9% yr3 spring 10% yr4 fall 7% 6% yr4 spring yr5 fall 4% 4% yr5 spring yr6 fall 1% yr6 spring

Estimate: 0.005*** F stat: 37.89

Academic Outcomes Enrollment & Degree Attainment

ELS: Academic results Outcomes Estimate Std. Error N R squared Bachelor's Degree OLS 0.243*** [0.056] 653 0.453 Matching 0.242*** [0.055] 650 0.458 IV 0.268 [0.236] 653 0.263 Two Year College Credential OLS 0.342*** [0.033] 653 0.551 Matching 0.343*** [0.033] 650 0.572 IV 0.102 [0.160] 653 0.341 As per IES requirement, all tables are weighted.

State data: Degree Attainment Outcomes Estimate Std. Error N R squared Bachelor s Degree 2yr credentials Any credentials OLS 0.191*** [0.010] 7,522 0.234 IV 0.066 [0.139] 7,522 0.174 OLS 0.292*** [0.015] 7,522 0.245 IV 0.086 [0.071] 7,522 0.141 OLS 0.101*** [0.017] 7,522 0.199 IV 0.152 [0.141] 7,522 0.197

State s IV Results By gender Outcomes Estimate Std. Error N R squared Bachelor s Degree 2yr credentials Women 0.024 [0.195] 3,705 0.194 Men 0.124 [0.175] 3,817 0.164 Any credentials Women 0.279** [0.110] 3,705 0.271 Men 0.092 [0.109] 3,817 Women 0.303 [0.218] 3,705 0.162 Men 0.032 [0.173] 3,817 0.208

Labor Market Outcomes Employability & Earnings

National Employment Results Outcomes Estimate Std. Error N R squared Log Earnings 2011 OLS 0.204** [0.097] 592 0.496 Matching 0.159* [0.094] 591 0.510 IV 0.193 [0.342] 580 0.482 Employment 2011 OLS 0.016 [0.033] 653 0.355 Matching 0.019 [0.032] 650 0.379 IV 0.183 [0.153] 640 0.291 As per IES requirement, all tables are weighted.

National Employment Results Outcomes Estimate Std. Error N R- squared Job Satisfaction: Earnings OLS 0.120 [0.147] 620 0.399 Matching 0.144 [0.149] 590 0.430 IV 1.663* [0.881] 580 0.223 Job Satisfaction: Usefulness of degree OLS 0.365** [0.147] 620 0.431 Matching 0.392*** [0.149] 590 0.475 IV 0.373 [0.913] 580 0.450 As per IES requirement, all tables are weighted.

State: Employment results Outcomes Estimate Std. Error N R squared 7 th Year Earnings OLS 1,300** [606] 2,653 0.23 IV 10,489 [7,528] 2,653 0.16 7 th Year Employment OLS 0.012 [0.016] 2,653 0.226 IV 0.249 [0.209] 2,653 0.171 * Similar results using 5 th or 6 th year employment outcomes.

Validity of the IV Is distance random? Does Distance and SES correlate?

Exclusion Restriction State Data Outcomes Distance S.E. F stat Sample Obs R squared (1) Dropout completely 0.000 [0.001] 0.74 Starting 4yr, GPA>=3.0 7,280 0.261 (2) Ever upward transfer 0.000 [0.000] 0.02 Starting 2yr 15,746 0.119

Conclusion & Discussion

Conclusion Compared to struggling students who stay at 4yr, 4 2 transfer students are More likely to receive 2yr credentials (women) No less likely to receive 4yr degrees More likely to have some postsecondary credentials Equally likely to be employed and have similar earnings Limitations Short employment outcomes follow up Small national sample (limited controls) Results could be state specific

Students Policy Implications Economical path to continue higher education Institution Collaboration between 4 and 2 year institutions Understanding of the mobile generation Importance of accurate data Collaboration with researchers

Policymakers Community colleges continue to provide a second chance in higher education 4 2 transfer is likely to increase if CC were to be free Facilitate 4 2 transfer could be one way to achieve college completion goal

Thank you for your time. For more questions: please contact me at ytl2102@tc.columbia.edu