Great Careers May Not Require A Degree
by Daniel Hecker
Workers who have some college education but do not have
a degree are more likely than high school graduates but less likely than college
graduates
to
be employed
in occupations that usually require a college degree. And they earn more than
high school graduates but less than college graduates.
Information about the job market for college graduates is abundant. But little attention is given to another group of workers of nearly equal size--those who have some college education but no degree. A comparison of this group's occupational employment patterns and earnings data with those of workers with a high school diploma and workers with a college degree reveals what you might expect: Some college is better than none, and more is better than less.
In
1996, 17.2 million full-time workers reported having some college but no
degree, compared with 17.7 million workers holding a bachelor's degree. These 2
groups, along with 29.1 million workers with a high school diploma and another
7.8 million workers with an associate's degree, accounted for about 81 percent
of all full-time workers aged 22 to 64.
Data
and Definitions
All
data in this article are from the 1996 Current Population Survey (CPS) and are
for full-time workers aged 22 to 64. The CPS groups workers by level of education
and occupation. The Bureau of Labor Statistics (BLS) analyzes the data further,
classifying occupations by the level of education and training usually required
for entry into each one. Because occupational patterns and median earnings are
different between men and women, data are presented by gender.
Employment
Patterns
A
number of workers with some college were employed in occupational categories
usually requiring college-level training. Twenty-four percent of men with some
college were in occupations that required a bachelor's degree or more
education, compared to only 11 percent of high school graduates. Not
surprisingly, so were 27 percent with an associate degree, and 62 percent with
a bachelor's degree. For women with some college, 22 percent were in
occupations requiring a bachelor's degree or more, compared to 14 percent of
high school graduates, 22 percent with an associate degree, and 57 percent with
a bachelor's degree.
In
1996, men with some college were most likely to be in the category of managers
not elsewhere classified. These managers held a variety of jobs in industries
such as construction, manufacturing, computer services, and repair services.
Compared
to men with only a high school diploma, those with some college were more likely
to be managers not elsewhere classified, sales supervisors and proprietors,
retail sales workers, and sales representatives. However, this group was less
likely than the group with a high school diploma to be machine operators,
except precision; truckdrivers ; automotive mechanics;
and carpenters. Compared to men with an associate degree, those with some
college were more likely to be managers not elsewhere classified, sales
supervisors and proprietors, and truckdrivers but
less likely to be engineers, electricians, and electrical and electronic
equipment repairers. Compared to men with a bachelor's degree, they were more
likely to be machine operators, except precision; truckdrivers ;
and carpenters but less likely to be managers not elsewhere classified, sales
representatives, and engineers.
Women
with some college were more likely to be in a secretarial occupation than in
any other. Compared to female high school graduates, women with some college
were more likely to be managers not elsewhere classified, accountants, licensed
practical nurses, and secretaries but less likely to be in retail sales,
cleaning and building service occupations, and assemblers.
Compared
to female associate degree holders, women with some college were more likely
to be managers not elsewhere classified, bookkeepers, retail sales workers,
and
nursing aides but less likely to be registered nurses. Compared to women with
a
bachelor's degree, they were also more likely to be secretaries or bookkeepers
but less likely to be managers not elsewhere classified,
accountants, registered nurses, and teachers.
Earnings
Most
workers with some college but no degree earned more than high school graduates
and less than workers with an associate or bachelor's degree in 1996. This
financial return associated with attending college is often described in terms
of a wage premium--that is, those with some college or a bachelor's degree
command an earnings premium over high school graduates of the same age group
and sex. The reduction of earnings from not completing a degree is defined as a
wage discount.
(1) This shows the earnings of workers with
some college divided by the earnings of workers in each education group. For
example, men with some college earned $1.13 for every $I earned by high school
graduates but earned 93 cents for every $1 earned by associate degree
graduates.
(2) For
women with associate degrees, except registered nurses, the median was $440 and
the index was .93.
Median earnings
of men with some college but no degree were 13 percent higher than those of men
with just a high school diploma; women with some college earned 14 percent more
than their high school counterparts did. Compared to associate degree holders,
however, men with some college earned 7 percent less--and women with some
college earned 13 percent less. The corresponding differences were greater at
the bachelor's degree level: Men with some college earned 26 percent less than
bachelor's degree holders, and women earned 31 percent less.
Premiums
and discounts for those with some college exist for
two reasons. First, workers with some college were more likely than high school
graduates but less likely than college graduates to be in higher paid
occupations. Second, within an occupation, workers with some college usually
earned more than their high school counterparts did. Compared to associate
degree holders, however, men with some college earned 7 percent less--and women
with some college earned 13 percent less. The corresponding differences were
greater at the bachelor's degree level: Men with some college earned 26 percent
less than bachelor's degree holders, and women earned 31 percent less.
Premiums
and discounts for those with some college exist for two reasons. First, workers
with some college were more likely than high school graduates but less likely
than college graduates to be in higher paid occupations. Second, within an
occupation, workers with some college usually earned more than their high school
graduate coworkers and less than those who had graduated from college.
Employment data for occupational groups are divided into four
categories, each consisting of groups with similar median earnings. The categories
ranked by level of earnings from highest to lowest, include:
- Executive, administrative, and managerial occupations; professional specialty
occupations; technicians; nonretail sales
occupations; and police and firefighters;
- Precision production, mechanics, and construction craft occupations;
- Machine operators, assemblers, and inspectors; transportation and material
moving occupations; handlers, equipment cleaners, helpers, and laborers; and
farming, forestry, and fishing occupations;
- Administrative support occupations, including clerical; retail sales; and
service occupations, except police and firefighter.
About
40 percent of men with some college were in the executive occupations group,
which had earnings well above the median for all other occupations. In
contrast, only 20 percent of men with a high school diploma were in this
earnings group. Not surprisingly, so were 46 percent of men with an associate
degree and 78 percent of those with a bachelor's degree. The machine operators
group, which had median earnings well below that for all men, included only 20
percent of men with some college but 34 percent of high school graduates.
In the
other two groups, patterns tended to lower earnings relative to those of men
with high school diplomas, but the overall effect was minor. Men with some
college were 2 percent more likely to be in the low-paid administrative support
occupations. And men with some college were less likely than high school
graduates to be in the precision production occupations category, which had
median earnings that were somewhat above average.
Thirty-seven
percent of women with some college, but only 24 percent of high school
graduates, were in the executive occupations category, having the highest
median earnings. Also in this category were 52 percent of women with an
associate degree, and 77 percent with a bachelor's degree. Only 24 percent of
women with some college, but 41 percent of women with high school diplomas,
were in the categories having the lowest median earnings, those that include
retail sales and precision production occupations. These two groups also had 17
percent of those with an associate degree, and 8 percent with a bachelor's
degree.
However,
women with some college were more likely than high school graduates to be in
below-average earnings category of administrative support occupations.
Occupational earnings and premiums within occupations.
Within each occupation, as within occupational groups, workers
with some college usually earned more than their high school graduate
counterparts but less than those with an associate or a bachelor's degree.
Men
with some college had higher earnings than those with only a high school
diploma in 70 percent of occupations for which there were statistically
reliable data; women with some college earned more in 73 percent of occupations
as well. Additionally, men with some college earned less than men with an
associate degree in 76 percent of the occupations, while women earned less in
71 percent of occupations in the same comparison.
In some
occupations, the earnings of workers with some college were the same or lower
than those of high school graduates. This is usually because a greater
proportion of workers with some college was young, and
young workers with little or no experience usually earn less. Data examining
occupational patterns only for those workers aged 35-64 show that, in almost
all cases, workers with some college earned more than high school graduates.
Workers with some college employed in occupations such as nursing aides, and retail sales workers earned less than the median for all high school graduates. Meanwhile, workers with some college employed as engineers, managers and administrators not elsewhere classified, and financial managers earned premiums of at least 50 percent over the median for high school graduates.
Conclusion
Data in
this article show that education pays off for workers with some college but no
degree. In 1996, these workers were more likely than high school graduates to
be in college-level jobs and to earn substantially more than workers with a
high school diploma. Nevertheless, those with some college but no degree were
less likely to be in college-level jobs than were workers with an associate or
bachelor's degree, and their overall median earnings were below those of their
college-graduate counterparts.
All
differences in occupational patterns and earnings may not be attributable to
level of education, however. People who complete just a few college courses may
have different personal characteristics from people who do not, perhaps
including level of maturity and ambition; verbal, mathematical, or mechanical
abilities; or a preference for working with people, data, or things. These
differences may affect their occupational choices and earnings. In addition,
occupational patterns and earnings may reflect nonacademic training acquired on
the job, through postsecondary vocational schools, in the military, or
elsewhere. It is clear, however, that completion of some college coursework
increases one's chances of entering certain occupations and usually increases
earnings within that occupation.
Daniel Hecker is an economist in the Office of Employment
Projections, BLS (202) 606-5713.
COPYRIGHT 1998 U.S. Government Printing Office
