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The Value of a College Degree

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Abstract

Not so long ago, people rarely questioned the value of a college degree. A bachelor's degree was seen as a surefire ticket to a career-oriented, good-paying job. Today, however, many people are uncertain whether going to college is such a wise decision. It's easy to see why. Tuition costs have been rising considerably faster than inflation, student debt is mounting, wages for college graduates have been falling, and recent college graduates have been struggling to find good jobs. These trends might lead one to believe that college is no longer a good investment. But when you dig into the data, is this really true? This week, we examine the value of a college degree in a four-part blog series. In this first post, we do the basic math and show that despite what appears to be a set of alarming trends, the value of a bachelor's degree for the average graduate has held near its all-time high of about $300,000 for more than a decade.

Suggested Citation

  • Jaison R. Abel & Richard Deitz, 2014. "The Value of a College Degree," Liberty Street Economics 20140902, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:86966
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    More about this item

    Keywords

    college wage premium; returns to education; human capital;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General

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