Skip College and Forfeit $800,000 In Earnings – Says New Federal Study

SAN FRANCISCO (Reuters) – Over a lifetime, the average U.S. college graduate will earn at least $800,000 more than the average high school graduate, a study published Monday by the Federal Reserve Bank of San Francisco shows.

That’s after accounting for the high cost of college tuition and the four years of wages lost during the time it takes to complete a typical undergraduate degree, the researchers found.

“Although there are stories of people who skipped college and achieved financial success, for most Americans the path to higher future earnings involves a four-year college degree,” wrote Mary Daly, the San Francisco Fed’s associate director of research, and Leila Bengali, a research associate, in the latest Economic Letter from the regional Fed bank.

In short – “college is still worth it.”

Click the link to read entire story Skip college, forfeit $800,000: Fed study – Yahoo News.

 

How Much Protection Does a College Degree Afford?

The worth of a Rhode Island college degreePast research from Pew’s Economic Mobility Project has shown the power of a college education to both promote upward mobility and prevent downward mobility.

In the wake of the Great Recession, however, many have questioned whether the advantageous market situation of college graduates has suffered under the pressure of the economic downturn.

This report, How Much Protection Does a College Degree Afford?, explores whether recent college graduates weathered the recession more successfully than less-educated groups. Using data from the 2003–2011 Current Population Survey for 21- through 24-year-olds, it reveals that a four-year college degree helped shield recent graduates from a range of poor outcomes during the Great Recession, including unemployment, low-skill jobs, and lesser wages.

Key Findings

  • Although all 21–24-year-olds experienced declines in employment and wages during the recession, the decline was considerably more severe for those with only high school or associate degrees.
  • The comparatively high employment rate of recent college graduates was not driven by a sharp increase in those settling for lesser jobs or lower wages.
  • The share of non-working graduates seeking further education did not change markedly during the recession.
  • Out-of-work college graduates were able to find jobs during the downturn with more success than their less-educated counterparts.

The findings show a real deterioration over the course of the recession in the market position of recent college graduates.  However, these effects were quite small when compared with those experienced by high school and associate degree-holders.

 

How To Pay For College