Course Corrections? The Labor Market Returns to Correctional Education Credentials. Working Paper No. 294-0224

Correctional education is a prevalent form of rehabilitation programming for prisoners in the United States. There is limited evidence, however, about the labor market returns to credentials received while incarcerated. Using incarceration, educational, and labor market data in Washington State, we study the labor market returns to GEDs and short-term vocational certificates earned in prison. We identify the returns to credentials by a difference-indifferences design that compares changes in earnings and employment for incarcerated persons who earn a credential to those who enroll in a program but fail to complete a GED or certificate. We estimate that GEDs increase post-incarceration earnings by about $450 per quarter and that vocational certificates increase earnings by about $250 per quarter. Degree completers have higher hourly wages, are more likely to be employed, and work more hours following release. For vocational programs, earnings increases are driven by certificates in construction and manufacturing. [The research presented presented in this report uses confidential data from the Education Research and Data Center (ERDC) located within the Washington Office of Financial Management (OFM).]