Financial Statistics of College Grads Vs. Non-Grads
Income expands as education increases. This is true whether one has a high school diploma, bachelor's degree or doctorate. A simple rule is that a bachelor's degree is worth twice as much as a high school diploma, while a Ph.D. is worth twice as much as a bachelor's degree. Mitigating circumstances beyond salary can offset some income discrepancies, and wide swings in earnings exist even among types of degrees.
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Features
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According to U.S. Census Bureau statistics from 2007, the mean high school graduate income was $31,286, roughly $26,000 less than the $51,181 earned by college graduates. Over the course of a 45-year working life, that amounts to $1.17 million. Even a two-year associate's degree provides an average of $180,000 more than a high-school diploma in a lifetime. A doctorate adds more than $2 million to a worker's pocket, given the average annual salary of $80,977.
Significance
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The Alliance for Excellent Education estimates that 12 percent of the population between 25 and 34 who dropped out of high school receive public assistance, while less than 1 percent of college graduates do. Only 3.6 percent of college graduates live below the poverty line, as opposed to 24 percent of those without a high school diploma. For single mothers who did not graduate high school, the rate is nearly one in two.
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Theories/Speculation
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Non-college graduates face difficulties beyond lower salary expectations. At a time when many blue-collar jobs are disappearing or being outsourced, jobs requiring a college degree are expanding. A majority of members of the National Association of Manufacturers feel that high-school graduates are no longer equipped to do the work. The Bureau of Labor Statistics lists the unemployment rate for high school graduates as more than four times that of their college counterparts.
Considerations
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Not all degrees and diplomas are created equal. A bachelor of science is generally worth more than a bachelor of the arts. An engineering graduate may earn $80,000 per year, while an English major might make $30,000. A high school graduate working in construction will make more than a classmate working in retail.
Effects
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Earning more also means paying more taxes. A College Board report in 2007 claims that a college graduate will pay 134 percent in federal income tax and 80 percent more in federal, state and local taxes than someone who does not graduate high school. This amounts to $60,000 over a lifetime.
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References
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- Photo Credit graduation poster image by robert mobley from Fotolia.com
