Income Comparison Between High School and College Graduates

Do college graduates really make more money?

The value of a college education is hard to dispute. College graduates have an edge in gaining employment in areas that will pay them more over their lifetime. The question is really one of extent. Many people question how much more money college graduates make after their student loans are paid and the lost years of productivity are accounted for.

Significance

Comparing incomes between high school and college graduates evaluates the amount of money each is paid on average at a given time interval. This could be weekly, monthly or annually. An annual comparison is the most advantageous because it accounts for fluctuations in the income of some seasonal occupations.

Types

In order to compare incomes between the two groups, all income sources must be identified. These could include hourly wages, salary, commissions, tips and gratuities, bonuses and other stipends. It would be insufficient to compare a waiter's salary or wages with a sales representative's without taking into consideration both the tips and the performance bonuses of each.

Geography

Any comparison between the two groups would also need to limit the geographical region in which the work occurs. A job earning $2,000 per month in Alabama is not equal to one earning $2,000 in California or New York. The cost of living is higher in the latter areas; thus the $2,000 would not be as good an income there. The currency of the groups being compared should be the same. Comparing dollars in the United States to euros or pesos is more complicated.

Average Earnings

Data provided by the 2004 U.S. census confirms that the average college graduate with a bachelor's degree earns approximately $66,445. High school graduates in the same study only earned $37,303. This is a huge difference per year and multiplies as those funds are available for investing and creating more wealth for the future.

Potential

Many of the benefits of having a college education are not immediately measurable. For example, the amount of money saved on being able to do things for yourself can be great.

References

• Why Go to College?
• Education Pays
• Educational Attainment in the United States