The effect of local labor market conditions in the 1990s on the likelihood of community college students’ persistence and attainment

This study analyzes the influence of local labor market conditions on the year-to-year persistence and attainment decisions of a sample of traditional-aged students who attended community colleges during the 1990s. The findings suggest that the enrollment and attainment decisions of these first-time community college students were not made purely as a response to changes in tuition costs, but rather the result of a more interconnected process whereby changes in tuition, local labor market conditions, and the relative change in both are considered. For those who are sensitive to these relative costs, the likelihood of dropping out is increased. Of those who remained enrolled, the evidence suggests that an increase in tuition appears to provide an incentive or extra motivation to finish a degree, especially an associate’s degree. This finding does not support the raising of in-state tuition to improve student outcomes; rather it draws attention to the complexity involved in student persistence and attainment decision-making.