Abstract: Approximately 20% of first-time undergraduates in the U.S. enroll in remedial courses at two-year colleges to acquire essential academic skills for college-level classes. However, the criteria for an “underprepared” college student remains ambiguous, leading to varied placement policies across states. This study uses collected data on state-mandated placement policies combined with the NLSY97 transcript data to assess the impact of these policies in a difference-in-differences framework. These policies increase the number of remediated students without affecting the two-year college enrollment. Students’ grades increase after the policy, increasing their chances of transferring to four-year colleges and attaining bachelor’s degrees. High-ability men primarily drive the results, indicating policy heterogeneities by ability and gender. The results of this study show differences between colleges and states in identifying underprepared college students.

Presented at: American Economic Association Annual Meeting, Western Economic Association International 98th Annual Conference, Econometric Society Africa Meeting

Abstract: High school graduates make an important decision with many future implications: pursuing post-secondary education or entering the labor market. This study examines the effects of large plant openings on this decision, utilizing the near universe of online vacancies in the U.S. to understand better the local labor market demand for different skill levels. Our identification strategy compares locations that narrowly secured plant investments to those that narrowly missed out, a method first used by Greenstone, Hornbeck, and Moretti (2010). Our results align with the existing literature: Upon plant openings, individuals take available jobs and move away from college enrollment. However, when the share of jobs requiring two-year college credentials increases, more high school graduates are attracted to two-year colleges, indicating that the type of labor market shocks is relevant in understanding college enrollment decisions.

Presented at: Association for Public Policy Analysis & Management 2023 Fall Research Conference