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August 27, 2008
Is college still worth the cost?
The upward bump in salaries that college graduates earn relative to high school graduates has actually declined this decade. Does this mean that a college education has lost its luster in the job market? Listen
Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:
"No, not at all. What's been happening, really over the last 30 years, is that the extra pay, if you will, that a college graduate earns relative to a high school graduate has been going up at relatively fast rates. Now this decade though, that increase has stopped, and you did hear about a slight - it was just very slight decline - in the premium. But this still means that someone with a college degree is going to be much, much better off in terms of their salary. In fact, right now, someone with a bachelor's degree will earn about 80 percent more than a person with a high school degree. And this is still near an all-time high. For example, in 1980, it was only 40 percent. So we shouldn't read this latest statistic as indicating that somehow college isn't worth it. In fact, college is still worth it. But what it does mean is we may be seeing a leveling off of this premium, and it may not be going up much anymore, at least in the near term, probably as a result of the slow economy and also as a result of the increase in the supply of college-educated workers."
Posted by Dave at August 27, 2008 08:00 AM