The Effect on Earnings of the Applied Baccalaureate Degree

Abstract

Objective: This study evaluates the postgraduate earnings of students with an applied baccalaureate (AB) degree compared to the earnings of students with the same associate degree but no baccalaureate degree. The research questions include the following: For those students who earn an AB degree, does it result in higher earnings than the associate degree? Does the earnings difference vary by field of study? Which student characteristics account for variation in earnings beyond the effect of the AB degree? Method: This study used propensity score weighted regression to examine the difference in earnings of AB degree and associate degree graduates in three programs—health, technology, and social science—at three different community and technical colleges in Washington state. Results: We find that the AB degree graduates have higher earnings than associate degree graduates in each of the three programs, although for certain programs the earnings increase is small enough to be explained by characteristics intrinsic to the student. Higher earnings are also associated to other student characteristics such as age, gender, earnings prior to enrollment, and academic proficiency, indicating a difference in economic benefit for some students. Contributions: The findings from this study contribute to the overall understanding of the complex relationship between level of education and earnings, specifically the impact on earnings of an AB above and beyond the associate degree. The analyses revealed evidence of a gender gap in earnings by program, which is an area that requires further study.