Value of an Education

Census Bureau data reveal that during the recent economic expansion, workers with professional degrees (e.g. physicians, lawyers) were the only educational group to see an increase in inflation-adjusted income. Every other group from Ph.D.s to high school dropouts experienced declining income.

In 2007 for example, professionals had an inflation adjusted median salary of $89,602, a 3% increase from 2000. In 2007, people with bachelor’s degrees earned $47,240 and high school graduates earned $28,290, respectively-a 3% drop for both groups during the period.

At least the data suggest there’s value to higher education. Master’s prepared people earned 20% more than those with bachelor’s degrees, and they in turn earned 67% more than those with high school diplomas.

These differences are shrinking though. In 2000 workers with a college degree earned twice as much as workers with high school diplomas. So when are those college loans due anyway?

 Print This Post

 Email This Post