EconPapers    
Economics at your fingertips  
 

Do the benefits of college still outweigh the costs?

Jaison Abel and Richard Deitz

Current Issues in Economics and Finance, 2013, vol. 20

Abstract: In recent years, students have been paying more to attend college and earning less upon graduation?trends that have led many observers to question whether a college education remains a good investment. However, an analysis of the economic returns to college since the 1970s demonstrates that the benefits of both a bachelor?s degree and an associate?s degree still tend to outweigh the costs, with both degrees earning a return of about 15 percent over the past decade. The return has remained high in spite of rising tuition and falling earnings because the wages of those without a college degree have also been falling, keeping the college wage premium near an all-time high while reducing the opportunity cost of going to school.

Keywords: college education; economic return (search for similar items in EconPapers)
JEL-codes: I20 J20 J24 J30 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci20-3.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fednci:00003

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Current Issues in Economics and Finance from Federal Reserve Bank of New York Contact information at EDIRC.
Bibliographic data for series maintained by Gabriella Bucciarelli ().

 
Page updated 2025-04-01
Handle: RePEc:fip:fednci:00003