Do the benefits of college still outweigh the costs?
Jaison Abel () and
Richard Deitz ()
Current Issues in Economics and Finance, 2013
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)
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