Do Community Colleges provide a Viable Pathway to a Baccalaureate Degree?

Community colleges have become an important entryway for students intending to complete a baccalaureate degree. However, many question the viability of the transfer function and wonder whether students suffer a penalty for starting at a two-year institution. This paper examines how the outcomes of community college entrants compare to similar students who initially entered four-year institutions within the Ohio public higher education system. Using a detailed dataset, we track outcomes for nine years and employ multiple strategies to deal with selection issues: propensity score matching and instrumental variables. The results suggest that straightforward estimates are significantly biased, but even after accounting for selection, students who initially begin at a community college were 14.5 percent less likely to complete a bachelor's degree within nine years.