Are All Degrees Worth the Same? A Comparative Analysis of Community College and University Baccalaureate Graduates’ Financial Outcomes

Objective: This study examines the financial outcomes of graduates from community college baccalaureate (CCB) programs compared to those from traditional 4-year university baccalaureate programs in Ontario, Canada. It aims to understand whether graduating from a CCB program influences earnings, student loan status, and loan balances relative to university graduates. Additionally, it explores how field of study and post-graduation pathways shape these outcomes. Methods: Using administrative data from Statistics Canada, this study analyzes four cohorts of Ontario college and university graduates from 2010 to 2013. It employs ordinary least squares regression models to estimate the relationship between CCB graduation and financial outcomes, controlling for individual and institutional characteristics. Results: CCB graduates experience a wage premium of 5% to 14% 2 years post-graduation compared to their university counterparts, conditional on postgraduate pathway. They are also 13 to 14 percentage points less likely to incur student loan debt, though no significant differences are observed in loan balances among those who borrow. The wage advantages are particularly notable in applied and technical fields. Conclusion: The findings suggest that CCB degrees provide competitive financial returns, challenging traditional assumptions about institutional quality. This study contributes to the literature on horizontal stratification in higher education and highlights the need for further research on mechanisms driving these results.