Wesley Mills

News Editor

Six years in college is better than no years in college. However, four years is better than six.

A recent study done by UT’s Center for Business and Economic Research shows that those who graduate in four years are much more likely to earn a higher income than those who graduate in more than four years or not at all.

In October, a team comprised of CBER members started a rough draft of what they wanted the study to look like. In January, they presented their findings to the Tennessee Higher Education Committee and received positive feedback.

Looking back to 2002, the study used administrative data to research how long it took students to complete a degree, if they completed one, and where they went shortly after college.

Assistant Professor of CBER Celeste Carruthers said that the study’s main goal is to show differences between those who complete college and those who don’t.

“We used administrative data on students who appeared to be first-time freshman in 2002,” Carruthers said, “so that we could track them over a number of years and see if they completed a degree at their first institution or elsewhere, and then after they finished their degree or left college if they ended up working in a Tennessee county.”

According to the study, achieving a bachelor’s degree in four years was the best option, while not ever going to college was the worst option. Those that went to college but didn’t finish earned nearly $10,000 less than degree recipients seven years after entering college.

Non-completers had lower ACT scores than degree recipients, and lower ACT scores were associated with lower earnings after college.

Not surprisingly, Assistant Professor for CBER Celeste Carruthers said that the most important finding in this study was the average income that four-year college graduates received over those who graduated in more than four years.

“There was a significant difference of earnings shortly after college between students who finished in four years and students who took a little bit longer but still got a bachelor’s degree,” Carruthers said. “The reasoning behind that is unless you are going to work for your mother, the people looking at your resume might not know a lot about you. They don’t know how motivated you are, how hard working you are, so they try to look for signals in your résumé or interview.”

The study found out that students who complete their bachelor’s degree within four years earn around $12,000 more than those who attend but fail to complete it.

Carruthers said that receiving a bachelor’s degree is a good signal to the labor market of your knowledge and experience, but it’s also important to look at the timetable to see how long it took to complete college.

Chandler Vannoy, sophomore in marketing, said that he is trying to finish in four years.

“Those who graduate in four years show they have more motivation and are harder working than those who graduate later,” he said. “Plus, those who spend more time in college probably do not have as good of a résumé as those who graduate in four years.”

According to the study, there are certain monetary advantages for those who graduate on time, but that’s not the only advantage students see.

Getting a job straight out of college or simply getting out earlier than others still in college are big incentives to graduate in four years.

“Being able to get a steady job earlier, being promoted earlier and establishing work relationships are just some big advantages for graduating on time,” Vannoy said.

Abbey Ellis, senior in mathematics, is also trying to graduate in four years, and is glad she is on the path to complete her degree on time.

“It makes me feel more accomplished, and it makes me feel better financially as well,” she said. “Sure, some of us take a victory lap due to trying to get in-state tuition, changing majors and transferring schools, but I’m proud to say I’ve stuck with my major to the end even through my doubts.”

Ellis said she knew going in that she would be there for four years, but doesn’t look down on those who may take longer.

“Sometimes things don’t work out the way they should, and you have to sacrifice not graduating in four years,” she said. “That doesn’t make them any less of a graduate though.”

The figures don’t surprise Ellis, but she said it makes the fact that she’s graduating on time that much sweeter.

Carruthers said it was surprising to see that those who go to college longer, but don’t finish their degree, still tend to make more than those who never attend in the first place.

“One surprise is that for students who did not finish a degree, we used regression analysis to see what the effect on staying in college a little bit longer was on their later earnings,” Carruthers said. “It turned out that students who stay in college a little bit longer, even if they didn’t finish a degree, end up having higher earnings shortly after they did leave college without a degree than those who didn’t go. We thought that was interesting that even if you leave without a degree, the fact that you stayed a little while might be a good signal.”

From all the stats and numbers the CBER compiled, there was one major item that stuck out.

“The takeaway advice for students would be to get your ducks in order, meet with your advisors and stay on track to graduate on time,” Carruthers said. “But if you’re not going to make it to a degree within four years, don’t give up hope because a degree itself is still a really important signal in the labor market.”