San Francisco Fed Report Adds Voice to the Debate on the Value of Higher Education
May 14, 2014
A new study by the Federal Reserve Bank of San Francisco asks the question, "Is It Still Worth Going to College?" Economists Mary C. Daly and Leila Bengali use data from the Panel Study of Income Dynamics (PSID) that dates back to 1968, to study the wage premium earned by college graduates over those with just a high school diploma. Those with advanced degrees are excluded from the analysis. "In 2011, the latest data available in our sample, college graduates earned on average about $20,050 (61 percent) more per year than high school graduates," the authors write.
Daly and Bengali describe earnings outcomes by educational attainment, college earnings by graduation decade, the cost of college, and breakeven ages. They conclude that the value of a college degree remains high.
"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," the authors add.
Senior Fellow, Finance and Campus Management
- Some Cash Management Changes Apply to All Institutions
- NACUBO Summarizes Regulations on Banking, Processing Relationships
- Education Funding Depends on Devil in the Details
- 2016 Intermediate Accounting and Reporting - Winter
January 25-26, 2016
- 2016 Facilities and Administrative Rates - Long Form
January 25-26, 2016
- ON-DEMAND: Understanding ED's New Cash Management Rules
- ON-DEMAND: A Financially Sustainable Approach to Innovate Academic Programs
- ON-DEMAND: Legislative Lunchcast: A 30-Minute Washington Update from NACUBO
- ON-DEMAND: Developing Your Campus Distance Learning Strategy
- ON-DEMAND: VIRTUAL: 2015 Annual Meeting
- ON-DEMAND: NACUBO Live!: CBO Speaks
- ON-DEMAND: A Just-in-Time Webcast to Explain FASB’s NFP Reporting Proposal
- ON-DEMAND: Decoding ED's Cash Management Proposal
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis