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An Exploratory Analysis Of The Relationship Between Student Earnings And Postsecondary Retention, Christopher Jepsen, Darshak P. Patel, Kenneth R. Troske

University of Kentucky Center for Poverty Research Discussion Paper Series

Policy makers are becoming increasingly concerned about the high percentage of students who attend postsecondary education without completing a degree. Researchers have studied numerous potential determinants of retention behavior for postsecondary students, such as financial aid, socioeconomic status, academic preparedness, academic and social integration, and expected future wages. However, none of these studies considers students’ earnings while in school as a potential determinant of retention. Using an administrative data from postsecondary institutions matched with administrative earnings data from the state’s unemployment insurance department, our results indicate that student earnings are negatively correlated to student retention in Kentucky postsecondary institutions. Our …