The data comes from a the Bureau of Labor Statistics, and can be seen here in handy, depressing chart form:
At the Chronicle, where the above chart was posted, Richard Vedder argues that maybe we place too much importance on higher education, citing a new study by the National Bureau of Economic Research:
This week an extraordinarily interesting new study was posted on the Web site of America’s most prestigious economic-research organisation, the National Bureau of Economic Research. Three highly regarded economists (one of whom has won the Nobel Prize in Economic Science) have produced “Estimating Marginal Returns in Education,” Working Paper 16474 of the NBER. After very sophisticated and elaborate analysis, the authors conclude “In general, marginal and average returns to college are not the same.” (p. 28)
In other words, even if on average, an investment in higher education yields a good, say 10 percent, rate of return, it does not follow that adding to existing investments will yield that return, partly for reasons outlined above.
Whatever some eggheads work out “university” to mean for people on paper can’t really take into account the experience of going to university, but the numbers are pretty surprising regardless. [Chronicle via Nick Bilton]
Neil
Saturday, October 23, 2010 at 1:32 PMMaybe we place too much emphasis on education…
Or maybe education has a value that is not entirely reducible to crude economic terms.
Keith Drain
Saturday, October 23, 2010 at 2:40 PMI think this says more for pie in the sky dreams.
Perhaps they need to lower the intakes for certain courses so only the ones that are more likely to do it as a career end up in the course.
Maybe they should then in turn make more spots available for professions where more people are needed and take away spots from courses that don’t need an influx of people.
That way you don’t get people with art degrees that can’t find a job in their field.
“Whatever some eggheads work out “university” to mean for people on paper can’t really take into account the experience of going to university, but the numbers are pretty surprising regardless. ”
Perhaps we should send those kids on a 4 year holiday, it’d probably be cheaper.
Steve
Saturday, October 23, 2010 at 2:48 PM5000 Matt Damons out there.
Glenn Fairbairn
Monday, October 25, 2010 at 10:07 AMMaybe there are a lot of graduates out there that did a few years in an office and realised how unfullfilling it is, and decided to do work which is a bit more satisfying.
Sure, the pay is less, but hating what you do for one third of your entire life has to be worth a lot more than that. Maybe some people just like having the freedom to do a menial task while their mind can wander and dream, than having to constantly analyse stock prices to make money for other people.
Will
Monday, October 25, 2010 at 10:19 AMlol great. Awesome article to read months before starting my PhD