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Do the Benefits of College Still Outweigh the Costs?
Article

Do the Benefits of College Still Outweigh the Costs?


автоматическое преобразование текста в аудио
автоматическое преобразование текста в аудио

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8

Qualities

  • Analytical
  • Innovative
  • Eye Opening

Recommendation

Years ago, having a university degree almost always meant earning more money. Today, an unaccommodating job market for many new college graduates and soaring tuition fees lead some to wonder if a sheepskin is still worth it. This illuminating analysis from the Federal Reserve Bank of New York provides some answers but also poses new questions. getAbstract recommends this report to parents, educators, students and anyone weighing the potential financial benefits of a higher education against its costs.

Take-Aways

  • Despite rising tuition costs and an unaccommodating job market for college graduates, a university education is still a good investment.
  • In the US, those with bachelor’s and associate’s degrees earn substantially more than high school graduates. Over a lifetime, someone with a bachelor’s degree earns about $1 million more than someone with only a high school diploma.
  • The annual return on investment of a college degree has been about 15% since 2004 – about double the return for the stock market.

About the Authors

Jaison R. Abel is a senior economist at the Federal Reserve Bank of New York, where Richard Deitz is an assistant vice president.


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