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Falling College Wage Premiums by Race and Ethnicity

Author

Listed:
  • Leila Bengali
  • Marcus Sander
  • Robert G. Valletta
  • Cindy Zhao

Abstract

Workers with a college degree typically earn substantially more than workers with less education. This so-called college wage premium increased for several decades, but it has been flat to down in recent years and declined notably since the pandemic. Analysis indicates that this reflects an acceleration of wage gains for high school graduates rather than a slowdown for college graduates. This pattern is most evident for workers in racial and ethnic groups other than White, possibly reflecting an unusually tight labor market that may have altered their college attendance decisions.

Suggested Citation

  • 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.
    • Handle: RePEc:fip:fedfel:96630
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    References listed on IDEAS

    as
    1. Leila Bengali & Mary C. Daly, 2014. "Is it still worth going to college?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    2. Stephanie R. Aaronson & Mary C. Daly & William L. Wascher & David W. Wilcox, 2019. "Okun Revisited: Who Benefits Most from a Strong Economy?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 50(1 (Spring), pages 333-404.
    3. Ashworth, Jared & Ransom, Tyler, 2019. "Has the college wage premium continued to rise? Evidence from multiple U.S. surveys," Economics of Education Review, Elsevier, vol. 69(C), pages 149-154.
    4. David Autor & Arindrajit Dube & Annie McGrew, 2023. "The Unexpected Compression: Competition at Work in the Low Wage Labor Market," NBER Working Papers 31010, National Bureau of Economic Research, Inc.
    5. David J. Deming, 2023. "Why Do Wages Grow Faster for Educated Workers?," NBER Working Papers 31373, National Bureau of Economic Research, Inc.
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