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  5. Career and Technical Education and Advances in Student Outcomes
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Career and Technical Education and Advances in Student Outcomes

Paper Session

Sunday, Jan. 7, 2024 8:00 AM - 10:00 AM (CST)

Convention Center, 225B
Hosted By: American Economic Association
  • Chair: Matthew Joseph Guzman, Michigan State University

Connecting Vocational Education Millages with CTE and Labor Market Outcomes in Michigan

Matthew Joseph Guzman
,
Michigan State University
Xu Dong
,
Michigan State University

Abstract

Due to declining post-secondary enrollment and skepticism regarding the value of higher education, students and policy makers have increasingly turned to career and technical education (CTE) courses for workforce development. CTE courses offer alternative education tracks to prepare students for in-demand jobs that may not require a four-year college degree. While CTE can be funded via state and federal sources, there is substantial variation in Michigan regarding how CTE is funded at the local level. Many school districts must fund CTE courses using their general education funds, but some integrated school districts (ISDs) have adopted dedicated property taxes to support CTE. These local property taxes or millages provide dedicated funding streams for CTE, and this removes the burden of CTE spending from school districts' general funds. Furthermore, this allows ISDs to provide separate, centralized CTE programs for students.

To understand how increased funding affects CTE enrollment, we use data on vocational education millages and administrative education data in each ISD between the 2007-2008 school year and the 2021-2022 school year. As revenue from CTE millages can only be spent on CTE-specific line items, expenditures on CTE increase dramatically after the adoption of a millage. Using staggered difference-in-difference models with millage adoption as the treatment, we find suggestive evidence that the adoption of dedicated millages increases the total number of CTE programs offered, the number of students enrolled in CTE, and the number of CTE teachers employed within the first three years after implementation. With this in mind, we also consider the labor market gains from millage adoption. By considering how changes in CTE enrollment translate to labor market outcomes, we can evaluate how increased funding from millage adoption affects students' long-term labor market outcomes and migration behavior as well.

Why Choose Career Technical Education? Disentangling Student Preferences from Program Availability

Michael David Ricks
,
NBER
Brian Jacob
,
University of Michigan

Abstract

Recent research finds that participation in high school Career Technical Education (CTE) can have substantial economic benefits, but the returns to CTE vary dramatically by field and across students. Some programs for some students are quite beneficial, but many are not. Unfortunately, there is no research on the determinants of CTE course-taking, and thus no guidance for policymakers seeking to improve student outcomes. In this paper, we utilize student-level longitudinal data on 11 cohorts of Michigan high school entrants to examine how students make decisions regarding CTE participation. We first document stark differences in access to and participation in CTE programs across gender, race and income groups. Next, we develop and estimate a discrete choice model to understand how both supply (accessibility) and demand (student preferences) factors contribute to these gaps. Our analysis yields three main findings: (i) the sex gap is driven entirely by differences in student preferences; (ii) the income gap is driven entirely by differential access to CTE programs; (iii) the race gap is driven by factors operating at the school level - that is, all students (regardless of race) at predominantly Black schools participate less in CTE, due to what we conjecture is a combination of supply and demand factors. Finally, our results suggest that the ability to take CTE classes without traveling to a different school building is a critical determinant of student participation, a fact that highlights important trade-offs in the design of CTE delivery models.

Can Technical Education in High School Smooth Postsecondary Transitions for Students with Disabilities? Evidence from Connecticut

Eric J. Brunner
,
University of Conneticut
Shaun M. Dougherty
,
Boston College
Stephen Ross
,
University of Conneticut

Abstract

A key emphasis of education policy for individuals with disabilities is facilitating successful transition from secondary education to postsecondary education or employment. A growing body of evidence shows that Career and Technical Education (CTE) programs lead to better educational and labor market outcomes, especially for males, but there is almost no evidence for students with disabilities.

We use admissions data from a statewide system of CTE focused high schools to estimate the impact of attending one of these schools on graduation, test scores, and earnings for students with disabilities. The admissions process creates a natural experiment in which we can identify discrete jumps in the probability that a student will be admitted and enroll in a CTE high school. Our data includes 10 cohorts of applicants to 16 schools including almost 6,000 students with disabilities.

We find large positive impacts on test scores and on time graduation. We also find positive employment impacts on quarters worked, quarterly earnings, and total earnings. Earnings increase between 25 and 40% depending on the measure. We find that our effects are concentrated among students who prior to high school had below median exposure to non-disabled peers. We also show that attending a CTE high school has a large, positive impact on the student’s time spent with non-disabled peers. These findings suggest a mechanism through which these high schools improve outcomes: incorporating students into the broader school environment relative to their middle school experience.

This paper constitutes the first quasi-experimental evidence on the effect of CTE on students with disabilities. Further, results suggest that providing students with disabilities the opportunity to participate in a largely inclusive setting with structured applied training and employment partnerships can substantially improve the transition of students with disabilities into the labor market.

Does the Pell Grant Impact Degree Match and Expected Income?

Usamah Wasif
,
University of New Mexico
Robert Berrens
,
University of New Mexico
Richard Santos
,
University of New Mexico

Abstract

The Pell Grant, the largest U.S. aid program for low-income students, provides cash grants to eligible recipients attending higher education institutes. Despite its significance, the program's cost of attendance coverage has dropped from 67% to 27% since its inception, and policy discussions have increasingly focused on free tuition policies. This study aims to investigate the value of the Pell Grant program by examining its impact on degree match and expected income, proxies for social mobility. We analyze University of New Mexico student administrative data in combination with discrete changes in Pell Grant amounts. These changes result from adjustments in the automatic zero Expected Family Contribution (AZ-EFC) eligibility cut-off, which the federal government uses as a measure of financial need in determining Pell Grant amounts. Students automatically qualify for the maximum award if their family's adjusted gross annual income falls below a specific threshold, known as the AZ-EFC eligibility cut-off. The College Cost Reduction and Access Act (CCRAA) in 2009 initially increased the AZ-EFC threshold by 50%, followed by a decline to initial levels in 2012. These changes create exogenous variation in Pell Grant generosity, which we leverage in our analysis by employing 2x2 difference-in-differences, event study, and interrupted time-series identification strategies. We estimate the effects of Pell Grant award changes on degree match and expected income. Additionally, we explore substitution and income effects as potential mechanisms driving these relationships. By shedding light on the impact of the Pell Grant program on social mobility indicators, this study contributes to the broader discussion on college affordability and the effectiveness of financial aid policies in higher education.

Discussant(s)
Blake Heller
,
University of Houston
Harry Patrinos
,
World Bank
Samuel Dodini
,
NHH Norwegian School of Economics
Richard Santos
,
University of New Mexico
JEL Classifications
  • I2 - Education and Research Institutions
  • I3 - Welfare, Well-Being, and Poverty