Incomes of College vs. High School Graduates
Although a high school graduate can achieve a good-paying job and earn as much or more than a college graduate, much research has been conducted concerning the benefits a college education provides. Agencies such as the U.S. Census Bureau and the National Center for Education Statistics, as well as nonprofits like The College Board, collect and compile data on the earnings of both high school and college graduates. Aside from earnings data, research compiled by The College Board shows that a college degree is associated with things like job satisfaction, lower poverty rates, healthier lifestyles and lower obesity rates.
Other People Are Reading
-
Average Incomes
-
The College Board's 2010 "Education Pays" report shows that high school graduates earned $33,800 in median earnings for 2008. By contrast, bachelor's degree recipients earned a median of $55,700 for that year. The report also shows that individuals with some college education but no degree, earned 17 percent more during 2008 than high school graduates. Median incomes also differed significantly between males and females. Female high school graduates had median earnings of $28,400 during this time while male high school graduates earned a median amount of $39,000. Female bachelor degree recipients earned $47,000 in median earnings while males earned $65,800.
Lifetime Earnings
-
The lifetime earnings of an individual increase at each level of educational attainment, based on 2009 data from the Census Bureau. Associate's degree holders can expect to earn around 24 percent more over a 40-year lifetime period than high school graduates. For bachelor's degree recipients, the amount is around 66 percent more than high school graduates. Master's and doctoral degree graduates earn around 97 percent and 158 percent more over a lifetime than those with only high school diplomas and GEDs.
-
Debt and Taxes
-
College graduates must figure in student loan debt and higher tax rates when calculating any advantage that a college education offers. Bachelor's degree recipients paid about $13,000 in federal, state and local taxes during 2008 whereas high school graduates paid about $7,100. The payments on student loans that college graduates must make also decrease any monthly discretionary income. Still, The College Board's 2010 report data shows the estimated cumulative earnings of a four-year college grad -- taking student loan repayment into consideration -- exceeds the cumulative earnings of a high school graduate by age 33, assuming the student entered college at 18 and spent four years out of the workforce.
Unemployment Rates
-
During economic downturns and generally, college graduates suffer less from unemployment. Between 2008 and 2009, college graduates' unemployment rates rose from 2.6 to 4.6 percent. However, high school graduate unemployment rates rose twice as much during this period, from 5.7 to 9.7 percent. In addition, the number of college graduates employed during the first quarter of 2007 through the first quarter of 2010 rose approximately 2 percent. During this same time period, the number of employed high school graduates decreased sharply by more than 15 percent.
-
References
- Photo Credit Thinkstock Images/Comstock/Getty Images
