New research from Virginia Commonwealth University shows that earning an associate degree has clear economic benefits but also reveals significant differences in labor market outcomes for people based on race, ethnicity, gender, and nationality.

The researchers compared the economic returns for those who completed some college coursework but did not earn a degree with those who earned an associate degree. They found that while an associate degree generally leads to higher earnings, the benefits are not equally shared across all groups.

On average, people with an associate degree earn more than those with some college but no degree. However, the study found that this advantage often disappears for individuals who belong to socially disadvantaged groups, such as non-white workers, women, or non-citizens. The economic disadvantage is even greater for people with multiple disadvantaged identities.

A diverse workforce

The study suggests that as the workforce becomes more diverse, more funding should be directed toward helping women and non-white workers earn associate degrees, particularly in high-demand, high-paying fields like nursing, information technology, and management.

“Women and non-white workers have been underpaid for decades,” the researchers note. “Providing more educational support for these groups could help close the long-standing pay gap.”

Completing a college degree remains one of the strongest paths to social mobility and economic growth. The researchers point out that people from lower-income backgrounds who earn a degree not only improve their own economic prospects but also help future generations by passing on the benefits of education.

Workers with some college but no degree tend to have unemployment rates and earnings that are closer to those of high school graduates than college graduates. The study shows that while an associate degree boosts earnings for all groups, it also highlights the unequal starting points for different populations.

“While women and non-white workers do see significant gains from earning associate degrees, white men continue to see the largest economic returns,” the researchers conclude. “Studies that focus only on average outcomes miss the diverse experiences of the workforce.”