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Does Developmental Education Improve Labor Market Outcomes? Evidence From Two States

By Michelle Hodara & Di Xu
In this paper, the authors examine the economic consequences of developmental education for students. Using longitudinal student-unit record data from two large community college systems linked to wage record data, this study estimates the labor market returns to developmental credits versus college-level credits for two cohorts of students who attended community college in North Carolina and Virginia. In both states, earning developmental reading and writing credits led to an increase in earnings, which suggests that earning developmental English credits may improve individuals’ employability. In contrast, in both states, developmental math credits had negative impacts on earnings. The negative impact of developmental math coursework on wages provides support for nationwide efforts to shorten the long-sequence structure of developmental mathematics, and to teach math skills that are applicable to students’ real-world needs. A version of this paper is published in the American Educational Research Journal, vol. 53, no. 3.
Download CAPSEE working paper
December 2014
View article (subscription may be required)
June 2016
  • Center for Analysis of Postsecondary Education and Employment (CAPSEE)

Related Publications

October 2016

Understanding the Relative Value of Alternative Pathways in Postsecondary Education: Evidence From the State of Virginia

December 2015

What About Certificates? Evidence on the Labor Market Returns to Non-Degree Community College Awards in Two States

Additional Resources

For more policy briefs and fact sheets, visit CCRC’s Policy Resources page.

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