Wage Data Done Right

September 22, 2014
  • Industry News

Measuring the job-market returns of college credentials is complex work, according to researchers who gathered here this week for a meeting on higher education data. That makes it challenging, or even risky, for policy makers to use those metrics to hold colleges accountable.

One reason is that earnings data could penalize institutions with a heavy focus on the liberal arts, teacher training or other relatively low-wage fields. Colleges might also shy away from enrolling students who are from lower-income backgrounds and less academically prepared.

Linking government funding with wage-based student outcomes “directly conflicts with an open-access mission,” said David Deming, an associate professor of education at Harvard University’s graduate school of education. “We really need to think hard about getting this risk adjustment right.”

Deming was speaking at the meeting hosted by the Center for Analysis of Postsecondary Education and Employment, which conducts research in five states and receives funding from the U.S. Department of Education.

Labor-market data was a major topic of discussion at the conference, in part because former students’ wages actually can be tracked, albeit with difficulty. It's at least easier to measure earnings than what students learn in college. And most people agree that it does matter whether graduates of an academic program can get a job with a decent wage, especially if they're taking on significant debt.

Read more at Inside Higher Ed: https://www.insidehighered.com/news/2014/09/19/researchers-discuss-relationship-between-higher-education-and-employment