In California, college degrees often pay—but not equally for all students. A new analysis from California Competes finds that the return on investment for bachelor’s degrees and associate degrees varies greatly across the state.
The report defines ROI as the economic return on a college degree minus its cost. It measures how much a graduate earns over 10 years compared to a high school graduate among those in full-time employment, then subtracts the total cost of graduating from a public institution.
Overall, 78 percent of bachelor’s degree holders and 62 percent of master’s degree holders in California see a positive ROI within 10 years of graduation. However, where a student lives shapes those results: The share of bachelor’s degree holders with a good ROI is higher in coastal, urban areas and lower in inland areas, ranging from 70 percent in the Inland Empire to 84 percent in the Bay Area.
That pattern changes in corresponding degrees. In the Bay Area, only 55 percent of associate degree holders see a positive return, compared to 67 percent in the Midwest.
David Radwin, principal researcher at California Competes, said the disparity underscores the need for stronger collaboration between higher education and regional labor markets, noting that college costs compared to the rest of the country hide significant differences in employment and income opportunities.
“One of the things we found in this report is that the cost of education is not very different in all regions,” said Radwin.
Benefits and opportunities after graduation are a different story.
“We know that Bay Area technology is one of the biggest employers—and that those jobs pay well,” Radwin said. “But there aren’t many of those jobs in the Inland Empire or places like Riverside and San Bernardino.”
“There are no Google or Meta or technology companies of the same scale or focus, so the jobs in those regions will not offer the same high salaries as those in the Bay Area,” he added.
Aligning education and careers: The report notes that strengthening ROI begins with state and agency leaders prioritizing affordability. In particular, that means expanding access to financial aid that helps cover living expenses, not just tuition.
“Policy makers should focus on increasing income and reducing costs,” Radwin said. “That way graduates can see a return on their investment in college and a strong economic return.”
Radwin also highlighted the need to streamline support for student success, including access to public benefit programs such as CalFresh, CalWORKs and Medi-Cal.
“Right now, it’s very difficult for students to access these programs, but it doesn’t have to be like that,” said Radwin. “[State policymakers] it should simplify the application and renewal processes.”
The report also highlights the need to strengthen the link between higher education and regional employment. That includes more deliberate alignment between college programs and labor market demand, starting with better data collection on how students fare after college.
Radwin said California Competes supports SB 1054, introduced by California senator Christopher Cabaldon, which would expand the state’s data collection to include employee hours worked, job locations and occupations—providing a more complete picture of student employment outcomes.
“That will better equip students, colleges and policy makers with the knowledge needed to build, maintain and expand quality programs that lead to good jobs,” he said.
At the federal level, the One Big Beautiful Bill Act introduces program-level accountability metrics, which will go into effect on July 1.
Radwin added that institutions should deepen relationships with employers, including internships and paid work-based learning opportunities.
“We need to do more of this work. It’s difficult and time-consuming, but it’s important in helping students transition to work,” he said.
Transparency in results: Radwin said the findings point to a broader need for colleges to be more transparent about the economic returns associated with advanced degrees and career paths.
“Institutions have a great responsibility to pass on this information,” said Radwin. “They need to do a better job of informing students early—before they finish matric or at least during the first year—so they can make decisions that are consistent with their goals.”
But Radwin said transparency is about equipping students with knowledge, not directing them to specific jobs.
“And if one of those goals is to get some money, students should know how much the graduates of their program earn, be it their first job or later,” he said.
“Not everyone needs to make a million dollars,” he added. “There are high-level jobs—such as teaching, social work or service—that don’t pay so well. But those are decisions that students should make with clear information.”
In Within Higher EdIn a major Student Voice 2025 survey of more than 5,000 students, only a fraction of respondents—12 percent—said they knew detailed results data for their program of study. Only 14 percent indicated that this information is readily available.
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