This brief is part of “Election 2024: Policy Playbook,” a series by Rice University and the Baker Institute that offers critical context, analysis, and recommendations to inform policymaking in the United States and Texas.
The Big Picture
- To keep Texas competitive in the global economy and ensure that Texans have access to opportunities that help them earn a living wage, it is essential to equip the workforce with skills needed for the future.
- Pre-K–12 school districts and colleges take on the central role of preparing young Texans for the workforce and are held accountable for ensuring students are ready for the future.
- Recent state legislation (e.g., HB 3 and HB 8) has updated the evaluation priorities for this workforce preparation, emphasizing both career readiness and completion of postsecondary credentials.
- Texas lawmakers should develop policies to amplify students’ college and career readiness and support the transition from high school or college into the workforce.
Summarizing the Issue
Investing in training for high-demand jobs will open pathways for young people to enter the labor market, earn a good living, and build rewarding careers. Texas lawmakers should create policies that incentivize these investments and prepare students to meet future workforce requirements. As part of this process, it is important to evaluate the effectiveness of existing programs and identify where additional supports are needed.
Latest Research
Recent research from the Kinder Institute’s Houston Education Research Consortium (HERC) found that career and technical education (CTE) supports postsecondary careers for high school students — but more investment and assistance is needed to ensure this advantage is long-lasting. Students with CTE training are more likely to enroll in college, be employed, and have higher earnings right after high school graduation.
The HERC research also found that CTE graduates in the Houston area — meaning students who completed CTE programs during high school — enrolled in college programs at higher rates than peers who did not complete CTE programs, with most enrolling in two-year institutions.
Figure 1 — CTE Graduates Are More Likely To Enroll in College After High School
CTE Graduates Have Higher Rates of Employment
Throughout the first six years after high school graduation, CTE graduates were more likely to be formally employed. The difference in employment rates between students who completed CTE programs and those who did not was about 7% in every year we studied. In the four years after high school graduation, CTE graduates who were employed had higher earnings than students without CTE experience. This advantage gradually decreased and ultimately reversed, leading to higher earnings for individuals with postsecondary degrees, regardless of their CTE status.
Figure 2 — CTE Graduates Earned More for the First 6 Years After High School
Other Perspectives
CTE helps get students through the door, but more support is needed to amplify and sustain this advantage. Despite an initial edge in college enrollment, most high school graduates with CTE training who attended two-year colleges did not earn credentials, even after several years of enrollment. In addition, despite earlier earnings advantages, many CTE-trained graduates are not working in their areas of expertise, limiting their earnings potential in the long run. Those who worked in industries aligned with their CTE training earned 5% more, on average, than peers who did not work in an aligned industry.
Figure 3 — CTE and Non-CTE Graduates With Degrees or Certifications Earn Most 6 Years After High School
Policy Actions
Because research shows that high school graduates who earn postsecondary credentials or obtain jobs in fields aligned with their CTE training have higher earnings, lawmakers should:
- Create programs that support the achievement of credentials — such as associate’s degrees or postsecondary certifications — by streamlining course requirements and building bridges between high school and college advising.
- Implement policies that focus on identifying or creating employment opportunities in areas aligned with CTE training. Intentional connections between school districts and employers can create school-to-work pipelines that connect a skilled labor force to industries with high demand.
The Bottom Line
Successfully developing the workforce of the future requires multiple stakeholders to come together and provide opportunities for young Texans. School districts provide some of these opportunities through CTE, which sets students up with an early advantage in college and the workforce. However, to sustain this advantage, specific policies need to be developed, and community stakeholders must be engaged. This type of collaboration can help create the right opportunities to enhance students’ college and career readiness and support their transition from high school or college into the workforce.
This material may be quoted or reproduced without prior permission, provided appropriate credit is given to the author and Rice University’s Baker Institute for Public Policy. The views expressed herein are those of the individual author(s), and do not necessarily represent the views of Rice University’s Baker Institute for Public Policy.
