A College Degree Pays Off -- And Then Some: Report

According to a new report from the College Board, a college degree pays for itself in many ways over a lifetime -- from enabling more consistent employment to keeping one's health in check.

The report, titled "Education Pays: the Benefits of Higher Education for Individuals and Society," is available for download here.

Some of the report's more salient (and surprising) points:

Salary: Median earnings of bachelor's degree recipients working full- time year-round in 2008 were $55,700, $21,900 more than median earnings of high school graduates.

Job satisfaction:
In 2008, about 58% of college graduates and individuals with some college education or an associate degree reported being very satisfied with their jobs, while 50% of high school gradu- ates and 40% of individuals without a high school diploma reported being very satisfied.

Health:
Within each age group, college-educated adults are less likely than others to be obese. In addition, children living in house- holds with more educated parents are less likely than other children to be obese.

Smoking:
During the decade from 1998 to 2008, the smoking rate declined from 14% to 9% among adults with at least a bachelor's degree, while the rate for high school graduates declined from 29% to 27%.

Parenting:
Among parents whose highest degree was a bachelor'sdegree, 68% read to their children daily in 2007. This compares to 57% of parents with an associate degree, 47% of parents with some college but no degree, 41% of high school graduates, and 26% of parents who did not complete high school.

But some question the validity of the report's findings. According to Inside Higher Ed, former chairman of the Bush administration's Commission on the Future of Higher Education and former chairman of the University of Texas System Board of Regents Charles Miller criticized the report as "flawed" and "illogical."

IHE has more:

"..the benefits individuals derive from a degree result not from the degree itself, but from the economic and regulatory policies that create jobs and income opportunities, which college graduates absorb [Miller said]. And with financial aid going to students who don't need it, "the finance system of higher education favors those who have special privileges and therefore maintains an unfair compensation for those able to get a degree."

What do you think? Is a college degree still worth it? Weigh in below.

Comments

[InezS33]

04:37 AM on 09/22/2010

Please show me a job that will pay 55K with my bachelor degree, I would love to see it

[Cristancho]

07:35 AM on 09/22/2010

Within 2 years of graduating I was making that. You gotta work for it.

[Benedictus70]

03:04 PM on 09/22/2010

Well, what did you study? Plenty of engineering undergrads come out of school making at least that much, if not far more.

If you studied the humanities, surely you went to college for the right reason (which was for a desire to learn, rather than a desire to earn). Thus, what's there to complain about?

[azatrox]

09:55 PM on 09/21/2010

With numbers that disparate, what is there to discuss? Point out all the rich, uneducated examples you want, but it is painfully obvious that a college degree is worth it for most.

[tnlcallen]

04:02 AM on 09/22/2010

I agree. The College education opens doors where they would otherwise be closed. I guess the only cautionary note I would add is if you are getting your degree, and it is in Medieval Basket Weaving, or some other obscure interest you may have, just be prepared to have a harder time finding a job in your chosen field.

[azatrox]

09:52 PM on 09/21/2010

Huh? The former chairman of Univ. of Texas System Board of Regents is f***ing CRITICIZING a study that says getting a college degree is a good thing??? Well, he was also in the Bush administration...nuf said.

[MyrtleJune]

05:57 PM on 09/21/2010

It BETTER pay off!

[Cougar1]

04:53 PM on 09/21/2010

A young woman interviewed with a Fortune 500 company. It was gruelling. A whole day. Four separate interviewers including a Vice-President. And good news! She was among the top five candidates. Except, she wasn't number one. Not long after, through a chance meeting, she found out a story that made her glad she lost out. The woman who did get the job was from out of town, quit her current job, sold her home & moved across the country. Only to be laid off in less than a month due to due to restructuring. How do you prevent this? Follow the company's history. You'll usually be able to find their path cluttered with broken careers of the unexpecting. GC Christie www.wix.com/gcchristie/jobs-jobs-jobs

[MattSanDiego]

04:15 PM on 09/21/2010

It doesn't take an advanced degree to see that the conclyusion of this "study" is a bunch of baloney. It does nothing to prove that college is the cause of the difference in health and wealth between those who go to college and those who don't. It is not a cause and effect relationship, but rather one of coincidence. The fact that many careers are off-limits without a degree is not conclusive proof that college prepares you for those careers, but rather that there is a gatekeeping function at work.

The fine print disclaimers in the actual report reveal that the whole thing is a PR exercise for the Higgher Education industry:

"All of the differences in earnings reported here may not be attributable
to education level. Education credentials are correlated
with a variety of other factors that affect earnings, including, for
example, parents’ socioeconomic status and some personal
characteristics.

While the average high school graduate might not increase
his or her earnings to the level of the average college graduate
simply by earning a bachelor’s degree, careful research on the
subject suggests that the figures cited here do not measurably
overstate the financial return of higher education"

[jackstpaul]

04:37 PM on 09/21/2010

Have you read the full study and examined its methodology? If not, as I surmise, you are making claims that you cannot substantiate and which might be false. They could have easily run regression analysis on these factors to address causation. Without examining the methods and logic used, you don't know whether that's true or not. Claiming it’s a matter of coincidence, as you do, is a statement about causation. Let's see your regression analysis demonstrating that it's coincidence.

Your comment "that many careers are off-limits without a degree is not conclusive proof that college prepares you for those careers, but rather that there is a gatekeeping function at work" ignores what the study itself addresses and focuses on your own fictitious (contra factitious) theme. The question isn't "prepare for work" in the study, it's "how degree holders benefit." You've identified a benefit.

When they have the disclaimer "may not be attributable" they are being careful, there is the possibility of non-attributability per them, but they are not saying it is so. The last sentence about "do not measurably overstate" speaks to the importance of the study.

[xlntcat]

06:41 PM on 09/21/2010

It is easy to tell that you passed on that advanced degree.  There is a marked income difference between those with a college degree and those without.  Moreover, those with college degrees have a 5% or under unemployment rate which has held steady throughout the recession. 

[garystartswithg]

04:15 PM on 09/21/2010

If you put the three working generations together the incomes schew far in favor of college educated boomers. everyone else is screwed, with gen y actually being massively underemployed. nice try at pimping educations

[SteveInRB]

04:00 PM on 09/21/2010

of course a college degree pays off. just ask university of phoenix, kaplan college or any other private for profit institution that is cashing in on federal student loans.

[robbcoffee]

03:27 PM on 09/21/2010

Unfortunately, having just any B.A degree is better in that it allows me to work a steady, low-paying white collar job instead of a hectic blue collar job. They never phrase it like that.
Still a good move but...
It's not that college is awesome.
The BA is the new high school diploma.

Which begs the question... why don't we insert whatever it is that's great about a BA into mandatory high school since it seems to be our new minimum requirement?

[BlueIndependent]

03:26 PM on 09/21/2010

This story's headline and contents are misleading, but sort of correct. It's just badly written. The short of it is, absolutely a college degree helps. I think an argument can be made for getting too high a degree too early in your career might hurt your chances for kickstarting your career after school ends, but in general getting an education is not a hindrance. And since today's economy is more about information and technology, degrees are only going to continue becoming more and more relevant for workers and sought by employers. In many fields a masters degree is often the norm, and even with that many companies want you to complement that degree with certifications and other professional development activities. I don't think it will be long before doctorates are very common; they seem to be already.

It's just a fact of life in the modern age: Even if you are one of the lucky few to be working an assembly line somewhere, get a degree. It may cost money but what will it save you later on in lost income and stalled dreams when the factory disappears?

[abbyrose86]

03:21 PM on 09/21/2010

I have a problem with these surveys...for various reasons.

Problem number one is there is a great deal of difference in the earning potential of different disciplines and different careers. For example an elementary school teacher or social worker requires more education than just a Bachelor's and usually doesn't rake in the big bucks...people who chose those professions usually do realize they will receive other rewards than financial ones.

Two, some disciplines while very worthy pursuits, don't provide opportunity for great income...for example some one who studies art or philosophy.

Three...outliers...some jobs which require a degree...do pay very, very, very well and may skew the data a bit....such as executives, wall street traders and some sales....however most of those require graduate degrees as well.

Fourth, as the job market has become more competitive, I would suggest many jobs don't really NEED a person with higher education, but rather it's now a requirement of many organizations in a need to weed out candidates, which may in turn skew results.

I am a proponent of higher education...don't misunderstand...I just feel studies such as this paint a false picture.

[xlntcat]

06:48 PM on 09/21/2010

I agree with your conclusions but when hiring particularly for an entry level position, I will go with the college graduate who has a decent grade point average over the high school graduate every time.  I know that the individual has the self discipline and drive to achieve as they come with a proven record of same.

[abbyrose86]

07:00 PM on 09/21/2010

For me...my experience has been the opposite in my field. Many of those with college degrees felt they were ABOVE the work some how and didn't put forth what I expected. I had great success with older people with only High school education...they were willing to learn and put in the effort. (my business was customs brokerage and international trade...so we are not talking blue collar positions...nor ones that that there IS a current degree program for).

[tnlcallen]

04:06 AM on 09/22/2010

Very well put.

[HeadlessHessian]

03:17 PM on 09/21/2010

A college degree opens doors, period. you can disagree all you want its your perogative.
Back in my youth you had more choices if you did not go to college, as someone else said in an earlier post. Straight to work, or trade school, or college. These days straight to work gets you minimum wage on which no one can really live well. Trade schools work for some. But none beat a good well rounded education, specifically in a good field. These days a lot of jobs have been shipped abroad. So the textile and steel mills are idle. A lot of computer jobs (my field) have also been shipped abroad or H1B'ed or L1'ed 'onshored'. Its criminal, but i digress.

Go to college if you can, put in the time, is my advise....it will pay off.

[xlntcat]

06:49 PM on 09/21/2010

The field for those without the degree has become increasingly smaller.

[HeadlessHessian]

08:21 PM on 09/21/2010

It sure has, but if you dont educate yourself you will be, for sure, doomed to low wages and living from paycheck to paycheck, with no chance of ever bettering your lot.
Precisely what the right wing wants, uneducated iditos, fearful of all and abiding by their wishes.

[mgabrys]

03:16 PM on 09/21/2010

I love the people who decry having a college degree as just a piece of paper. Then when the economy goes into the toilet, and resumes are measured by any and all differences between candidates - that "piece of paper" is suddenly worth lots of little pieces of paper. All of them green.

[Dameocrat]

03:29 PM on 09/21/2010

I think it is answer to a strawman question. The question is college worth it to those who must go into debt.

[xlntcat]

06:55 PM on 09/21/2010

Yes.  It is.  Now in the interest of disclosure I have made a career of going to college for the simple joy of learning and I am good at it.  But I do have a theory that education may be wasted on 18 and 19 year olds and that their immaturity including the fact that their brains have not reached full development accounts for the high drop out rate among freshmen and sophomores. 

[1110Awaits]

03:16 PM on 09/21/2010

HELL NO! Look at the current administration! Full of college grads that don't know their way around TurboTax, a P & L statement or a project plan!

[Benedictus70]

03:30 PM on 09/21/2010

Arbitrary anecdotes and cherry picked examples are a perfect strategy for any debate! That's the first thing we learn in college!

[Ali Rockwood]

06:31 PM on 09/21/2010

actually, i think the problem is that way too many of thse types know their way ALL the way around a p/l statement... ;)

[cgeorgan]

03:13 PM on 09/21/2010

A college degree, IMHO, will pay off for somebody who is college material.

To put another way:  It's not the degree, it's you.

[Dameocrat]

03:17 PM on 09/21/2010

and middle and working class people just happen to fall into these catagories despite high grade point averages. While rich people hardly every do even if they are like George W. Bush.

[cgeorgan]

03:19 PM on 09/21/2010

Obviously college wasn't for you -

[BlueIndependent]

03:35 PM on 09/21/2010

Your premise is crap. I could easily extend that to childhood education and say that it only works for kids who like going (which would be none of them if it were their choice to make). College isn't forced, but the claim about the person being the crux of the question is BS. What defines "college material"? That's a meaningless container.

[cgeorgan]

03:38 PM on 09/21/2010

I thought of a way to respond, but the fact is that my original comments were as concise and salient as possible.  It's unfortunate that you disagree, but that's your prerogative.