Many studies find large returns to college attendance. Given their low income, current and former welfare recipients stand to benefit substantially from increased educational attainment if these estimates represent the causal effect of college attendance. However, the Deficit Reduction Act of 2005 placed stringent limits on concurrent college attendance and TANF receipt and resulted in a significant reduction in college attendance among TANF recipients in Colorado. This study finds that women in college following entry into Colorado’s TANF program experience large and significant earnings gains which are driven by receipt of a credential.
The Returns to Higher Education for Colorado Works Recipients Study