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Is it still worth going to college?

Author

Listed:
  • Leila Bengali
  • Mary C. Daly

Abstract

Earning a four-year college degree remains a worthwhile investment for the average student. Data from U.S. workers show that the benefits of college in terms of higher earnings far outweigh the costs of a degree, measured as tuition plus wages lost while attending school. The average college graduate paying annual tuition of about $20,000 can recoup the costs of schooling by age 40. After that, the difference between earnings continues such that the average college graduate earns over $800,000 more than the average high school graduate by retirement age.

Suggested Citation

  • Leila Bengali & Mary C. Daly, 2014. "Is it still worth going to college?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfel:00015
    as

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    References listed on IDEAS

    as
    1. Barrow Lisa & Rouse Cecilia Elena, 2005. "Does College Still Pay?," The Economists' Voice, De Gruyter, vol. 2(4), pages 1-9, September.
    2. Stacy Dale & Alan B. Krueger, "undated". "Estimating the Return to College Selectivity Over the Career Using Administrative Earning Data," Mathematica Policy Research Reports d76ec29a0bbb4b1bb9d285b5a, Mathematica Policy Research.
    3. repec:mpr:mprres:6922 is not listed on IDEAS
    4. Hilary Hoynes & Douglas L. Miller & Jessamyn Schaller, 2012. "Who Suffers during Recessions?," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 27-48, Summer.
    5. repec:pri:indrel:dsp01gf06g265z is not listed on IDEAS
    6. Flavio Cunha & Fatih Karahan & Ilton Soares, 2011. "Returns to Skills and the College Premium," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43, pages 39-86, August.
    7. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-1160, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. C. Mistretta-Belna., 2014. "Is the rise in student loan debt in the United States a source of economic fragility?," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 35, pages 55-73, autumn.
    2. Nicholas Hillman & Kata Orosz, 2017. "Introduction: Connecting Student Loan Research and Federal Policy," The ANNALS of the American Academy of Political and Social Science, , vol. 671(1), pages 8-18, May.
    3. Leila Bengali & Marcus Sander & Robert G. Valletta & Cindy Zhao, 2023. "Falling College Wage Premiums by Race and Ethnicity," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2023(22), pages 1-6, August.
    4. Lindsay C. Page & Judith Scott-Clayton, 2015. "Improving College Access in the United States: Barriers and Policy Responses," NBER Working Papers 21781, National Bureau of Economic Research, Inc.
    5. Stuart J. Heckman & Jodi C. Letkiewicz & Kyoung Tae Kim, 2023. "A Fracturing Social Contract? How Perceptions of the Value of Higher Education are Changing," Journal of Family and Economic Issues, Springer, vol. 44(1), pages 156-174, March.
    6. Page, Lindsay C. & Scott-Clayton, Judith, 2016. "Improving college access in the United States: Barriers and policy responses," Economics of Education Review, Elsevier, vol. 51(C), pages 4-22.
    7. Jaison R. Abel & Richard Deitz, 2013. "Do the benefits of college still outweigh the costs?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 20.

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