More Reasons to Go to College

I've noted before that if you go to college, you'll earn more than people who don't go. And for me, a small $5,000 investment in college paid off very nicely. Well, here's a quote from a recent Wall Street Journal piece that says that and a bit more:

Hiring at the senior level is strong even though the overall economy is sour because employers have a continuous need for highly educated, skilled workers, said Mr. Burnison. "For those individuals that attended college or have advanced degrees, their earning power is two to three times those that drop out of high school," he said. "The unemployment rate is equally higher for those who did not get advanced degrees."

So, if you go to college

• Your earning power is two to three times that of those who drop out of high school.
• There is a "continuous need for highly educated, skilled workers."
• Your chance of being unemployed is lower.

Overall, it's a pretty good deal. Not only all the great benefits noted above, but it also kick starts your biggest financial asset. Just be sure you balance your college debt with your potential earning ability. It's when people get these out of balance (with the debt being way too high for what they can hope to earn) that they get into trouble.

Comments

[Skeptic]

Your earning power MIGHT be two to three times that of a high school drop out.

Then again, it MIGHT be no greater than that of a dropout.

You can cite means and medians, but let's not forget the downside risk.

[kentuckyliz]

Displayed visually:

http://www.bls.gov/emp/emptab7.htm

Education makes a bigger difference for women than it does for men. Men have access to higher paying jobs not requiring an education, whereas women without education get low paying jobs. Not like a woman can't become a higher paid tradesperson, but usually doesn't choose to do so, especially as the demands of the job conflict with family demands.

There's lots of interesting information on the BLS website. Some technical, some for a more general audience.

Occupational earnings can be looked up here - and it gives low, medium, and high earnings, based on actual earnings of real people:

http://www.careeronestop.org/SalariesBenefits/SalariesBenefits.aspx

Skeptic: downside risk is real, but if I dropped out of high school, I'd be working restaurants or retail, and my earnings would be far lower than what I could have obtained with a Bachelor's or Master's degree. That's what my world looks like. I suppose some fairy could have waved a magic wand to make me an exception to the rule, but remember, luck is preparation meeting opportunity. I'd rather bet on the upside odds.