Many states looking to invest in higher education to strengthen workforce pipelines and expand economic mobility lack the data needed to target those investments effectively. They may have a clear picture of their labor market needs and can track how many and which kind of credentials they are producing, but what is often missing is a clear understanding of how those credentials translate into employment outcomes: whether graduates enter the industries states aim to grow, whether they remain in-state, and whether their earnings support long-term economic security. The Postsecondary Employment Outcomes (PSEO) dataset helps close that gap by linking postsecondary education to wage and employment data, illuminating how educational pathways connect to workforce outcomes both within and beyond state borders.

By linking postsecondary records to wage and employment data, PSEO enables states to move from counting credentials to evaluating outcomes. It allows policymakers to examine which programs are most likely to lead to family-sustaining wages, and how those outcomes vary across institutions and geographies. The data make it possible to assess whether graduates from targeted fields actually enter the industries states aim to strengthen, providing insight into how long it takes graduates to reach economic security and how consistently programs deliver those outcomes.

With support from the PSEO Coalition, Ithaka S+R used PSEO data from South Carolina to explore three key questions, each of which is relevant for states nationwide. To do this, we published a set of three reports, linked below and on the right.

Which programs lead to family-sustaining wages, and how do outcomes vary across institutions and geographies?

Report: Rural Graduate Retention and State Workforce Contributions in South Carolina

In South Carolina, graduates’ earnings vary substantially depending on their program of study. In this report, we find that engineering, computer science, and certain health-related fields consistently rank among the highest-paying bachelor’s and associate degrees. At the associate level, engineering technologies and health professions also produce strong early earnings outcomes.

But geography matters. Graduates of urban institutions earn more on average than graduates of rural institutions at both the associate and bachelor’s levels. Ten years after graduation, bachelor’s graduates of urban institutions earn roughly $62,000 compared to about $55,000 for graduates of rural institutions. At the associate level, the gap between graduates from urban and rural institutions is also meaningful and persistent.

Program mix may explain part of this difference. Urban institutions may offer programs that attract students into higher-paying disciplines at greater rates or are more closely aligned with local industry partners or needs. Labor market context also matters: graduates of urban institutions may be more likely to work in higher-wage regions or industries, but also to leave the state in pursuit of opportunity.

For policymakers, these findings suggest that strategies to expand labor market opportunity must account not only for students’ field of study, but also for institutional geography. The economic returns associated with a given program can vary meaningfully depending on where students enroll and the labor markets they enter. Students in specific regions or at certain institutions may experience stronger economic mobility outcomes if they complete specific programs. Institutions, in turn, should assess whether their program offerings are aligned with high-demand, high-paying careers in their regional economy and whether students have clear pathways into those opportunities.

If we boost enrollment in these programs, how likely are graduates to work in the industries we expect?

Report: Industry Concentration and Workforce Pathways in South Carolina

Workforce alignment requires more than producing degrees: it requires understanding whether graduates actually enter the sectors that states aim to strengthen. Using PSEO data, we examined the concentration of South Carolina graduates in various industries, based on their program of study and the level of degree they earned. Bachelor’s programs like education, healthcare, and architecture, and associate programs like healthcare, precision production, and biology, show strong workforce alignment, with a large share of graduates employed in a single industry. These concentrated pathways suggest clear pipelines between postsecondary credentials and careers.

Other programs lead to far more diffuse outcomes. Many bachelor’s graduates in South Carolina are distributed across a wide range of industries, particularly early in their careers—although in some cases industry alignment may strengthen over time. South Carolina associate degree graduates are generally concentrated into a smaller number of industries than bachelor’s graduates. This may reflect the fact that associate degrees often involve more targeted workforce preparation or that fewer associate programs are offered.

Our report on rural graduations adds another important dimension. Graduates of rural institutions, especially those with associate degrees, are more likely to remain employed in South Carolina and disproportionately work in education, health care, public administration, and manufacturing—sectors foundational to South Carolina’s local economies.

PSEO data allow policymakers to assess whether specific programs consistently channel graduates into the industries those programs are intended to support, whether that alignment endures over time, and whether graduates remain employed in-state to meet local workforce needs. Importantly, PSEO data also enable states to evaluate whether investments, such as expanded financial aid or outcomes-based funding, are likely to produce graduates ready to meet the state’s workforce needs.

If we boost enrollment in these programs, how likely are graduates to earn family-sustaining wages, and how long will that take?

Report: Beyond the Median: Earnings Dispersion Across Programs in South Carolina

Even within high-paying programs, not all graduates experience the same earnings outcomes. Median earnings can mask significant variation in the risk and reward students’ face in choosing a program of study. Our analysis shows that some programs, like engineering and certain health fields, offer relatively predictable earnings outcomes, with most graduates earning above a living wage within five years. Other programs show wide dispersion in earnings. In bachelors fields such as biological sciences and interdisciplinary studies, top earners achieve very strong earnings outcomes, while a substantial share of graduates earn below a living wage even five years after graduation.

The time horizon also matters. In South Carolina, some associate degree graduates earn more than bachelor’s graduates in the first year after completion, particularly in rural contexts. Over time, however, bachelor’s graduates tend to pull ahead, with earnings premiums emerging more clearly five to 10 years after graduation.

For policymakers, these findings highlight important tradeoffs between short-term workforce entry and long-term economic mobility. In South Carolina, some programs offer strong early wages but may not sustain earnings growth over time, while others show slower initial returns but greater long-term upside. At the same time, expanding enrollment in certain fields may increase overall credential production without ensuring that a substantial share of graduates reach family-sustaining wages. Examining both the earnings floor—such as the 25th percentile—and the trajectory of wage growth over time allows states to better assess whether expanded enrollment is likely to translate into durable economic security for graduates.

Conclusion

These findings from South Carolina underscore that postsecondary value is multidimensional. Earnings vary by field of study and institutional geography, industry alignment differs across programs, and wage growth unfolds over time in ways that shape both risk and opportunity for students. Investments that overlook these dynamics may fall short of their intended economic impact. Aligning postsecondary investment with workforce demand and expanding economic mobility requires a more comprehensive view of inputs and outcomes—one that considers not only how many credentials are produced, but which credentials, where they are earned, and how consistently they create economic opportunity and meet industry needs. PSEO data provide that perspective. As more states leverage these data, they can design higher education and workforce policies grounded not only in aspiration, but in evidence—strengthening public trust and maximizing long-term economic impact.

This research was developed in collaboration with the PSEO Coalition, with generous funding from the Strada Education Foundation. We’re grateful to Elise Miller McNeely for her significant contributions to this project.