Panel Paper: Labor Market Returns to Occupational Concentration for Non-College Goers

Thursday, November 7, 2019
Plaza Building: Concourse Level, Governor's Square 16 (Sheraton Denver Downtown)

*Names in bold indicate Presenter

Jay Plasman, The Ohio State University


Career and technical education (CTE) is in the midst of a renaissance in the United States. Recent federal policies – specifically the Perkins legislature beginning with Perkins IV in 2006 and more recently Perkins V in 2018 – have focused on advancing both the academic rigor as well as the relevance of CTE coursework. Recent research on the impacts of participation in CTE show positive trends relating to both the rigor and relevance of CTE: increased odds of graduation, improved chances of postsecondary enrollment, and higher wages to name a few (Author et al., 2014; Author, 2015; Author et al., 2016; Author et al., in press; Bozick & Dalton, 2013; Dougherty, 2016; Sublett, 2016). These outcomes also appear to be enhanced through concentration in CTE (i.e., completion of three or more credits in a given CTE cluster).

To date, much of the research on labor market outcomes has focused on specific state CTE programming or specific CTE programs (e.g., Career Academies, P-Tech, Linked Learning, etc.; Dougherty, 2018; Hemelt, Lenard, & Paeplow, 2018; Kemple & Willner, 2008; Warner et al., 2016). Additionally, previous research has not often explored labor market outcomes specifically for those students who do not go on to enter postsecondary education. Understanding how CTE concentration relates to labor market outcomes on a national level would add to the conversation about the efficacy of CTE programming. To gain insight into some of these impacts, I pose the following research questions:

  1. What are the expected labor market returns associated with occupational concentration in high school?
  2. How do high school occupational concentrators who do not attend any postsecondary education fare in the labor market when compared to non-concentrators who do not attend college?
  3. Are there differences in outcomes based on CTE cluster?

Using the most recent nationally representative dataset, the High School Longitudinal Study of 2009, preliminary results of my analyses point to some key findings. First, students identified as occupational concentrators in high school are predicted to earn significantly more than their non-concentrator peers. This finding held when looking at all students or limiting the sample to only those students who do not attend college. Finally, there were very different returns to concentration based on CTE cluster. For example, students who concentrated in areas such as information technology or engineering technology saw greater returns than in other areas.

There are several implications from these findings. First, CTE seems to be a beneficial pursuit for non-college bound students. Additionally, policymakers and practitioners may need to reexamine certain occupational cluster course offerings and programs of study to ensure they are providing students with the knowledge and skills necessary to succeed regardless of whether they pursue postsecondary education.