Policy to Realize the Promise of Short-Cycle Programs
Information Information about programs is crucial for students, the policy maker, and the economy as a whole. Students cannot choose “good” programs unless they know program characteristics and outcomes. The policy maker cannot oversee and regulate the sector without knowing how it performs. The economy cannot obtain the advanced skills it needs unless those who supply them (that is, higher education students) know which skills are demanded in the labor market. Suppose, for example, that the labor market needs data scientists more than tourism managers. In a well-functioning market, data scientists would command higher salaries than tourism managers. Armed with this information, at least some students would become data scientists. Without salary information, too many students might become tourism managers. In this scenario, neither would students obtain the highest possible salary nor would firms obtain the required skills—a “lose-lose” situation. Information is thus critical to a good functioning of the education and labor markets. In LAC, the vast dispersion in returns to SCPs and bachelor’s programs, as well as the persistent SCP stigma, indicates that students are likely ignorant of the good average outcomes of SCPs, particularly relative to an incomplete bachelor’s program. Even if they know such outcomes, they may believe they would actually graduate from a bachelor’s program should they enroll in one. Students, however, should be familiar with some key facts when making their decisions: in LAC, the chances of completing a bachelor’s program are less than 50 percent (chapter 1); they are lower for low-income, poorly prepared students than for others;3 and not all bachelor’s graduates fare better than SCP graduates (chapter 2). Further, students may ignore not just programs’ returns but also their content. It is easy to imagine what an accountant does, but not necessarily what a cybersecurity specialist or a logistics technician does. These issues are all the more serious in LAC, where students choose a higher education major right at the beginning of their studies (chapter 1). While switching majors is possible, it involves starting the new one almost from scratch, as credits do not transfer easily among majors owing to a lack of general education classes. Also, students in LAC typically attend higher education only once in their lifetime. As a result, most students make the high-stakes choice of a major only once, when they are very young. Lack of information about the programs’ content and returns as well as unrealistic perceptions of their readiness for the various programs can certainly lead students to make poor choices. Mitigating these problems requires that students gain access to program-level information, including program content, costs and funding options, average labor market outcomes, background characteristics of the average graduate (for example, average academic readiness), and requirements for student success (for example, a strong math background). Based on this information, students should be able to assess their readiness and fit for the program. Program-level information should be made available in high school—at least two or three years before graduation— for the students to have enough time to make these important choices. The information should reach not only students but also the families, who might make
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