Benefits of College Degree

An analysis on the “American Opportunity” blog summarizes some statistics on the benefits of achieving a college degree as compared with a high school diploma.

Despite having seen these types of statistics many times, I’m amazed at the significant differences between job prospects for a high school graduate vs those for a college grad.  For example, 2015 unemployment levels for high school graduates were more than twice that for college graduates at 5.6% – 2.5%, respectively.

Of course, when we adjust for the cost of college education, including the opportunity cost of delaying work while obtaining that degree, the benefits of college vs high school narrows.

Additionally, we should further stratify the information between those with an undergraduate degree and those with a post-graduate college degree.

Lastly, before considering  policy recommendations for improving opportunities for high school graduates, we need to consider other environmental factors – economic, social, and educational.

But, given their limitations, I find the raw stats pretty compelling in favor of going to and completing a college education.

 

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About docjonz

I am an Associate Professor of accounting at Hofstra University in Hempstead, NY. Additionally, I have more than 30 years of professional accounting experience in various capacities including auditing, accounting standard setting and corporate accounting policy.
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