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In this chapter, we explore the potential of the Associate in Applied Science as both a terminal and a transfer degree. We first contextualize AAS degrees by examining their place in the development and missions of community colleges and their current purpose and prominence. We then review recent U.S. employment data and wage dividends for individuals with AAS degrees as well as those graduates with AAS plus baccalaureate degrees. Initially intended as a terminal credential leading directly to employment, a subset of students is likely to utilize the AAS degree for transfer and additional preparation leading to significant economic benefits and career mobility. We suggest that this phenomenon — presently understudied — is likely to increase in frequency as the United States becomes an increasingly credentialed society. Using North Carolina as an example, we document the state's workforce needs for AAS and AAS plus baccalaureate degrees and conclude by examining the implications for policy and practice created by the hidden transfer function of the AAS degree.

In this chapter, we explore the potential of the Associate in Applied Science as both a terminal and a transfer degree. We first contextualize AAS degrees by examining their place in the development and missions of community colleges and their current purpose and prominence. We then review recent U.S. employment data and wage dividends for individuals with AAS degrees as well as those graduates with AAS plus baccalaureate degrees. Initially intended as a terminal credential leading directly to employment, a subset of students is likely to utilize the AAS degree for transfer and additional preparation leading to significant economic benefits and career mobility. We suggest that this phenomenon — presently understudied — is likely to increase in frequency as the United States becomes an increasingly credentialed society. Using North Carolina as an example, we document the state's workforce needs for AAS and AAS plus baccalaureate degrees and conclude by examining the implications for policy and practice created by the hidden transfer function of the AAS degree.