Study affirms college degree leads to higher future income

By: A.J. Donatoni

Posted: 11/3/06

It turns out that a college education does lead to a more successful career, according to a report released by the College Board earlier this year.

The report pinpointed the growing rate in the differences of median incomes by adults who have college degrees versus those who have high school diplomas. The report is an update to a similar publication issued in 2004 that analyzed the benefits of earning a college degree.

The median income of college graduates is 63 percent higher than the median earnings of high school graduates, said Mike Cahill, director of Syracuse University Career Services.

Although it's a wide gap, he said it's important not to jump to conclusions.

"One of the things that we have to be careful of is making gross generalizations," he said. "Statistics will give you the averages on a large population, and within those populations there are always wide ranges. There could be (high school graduates) out there … who are still making more money than those that graduated from college."

The College Board gathered statistics for its 2006 edition that estimated how much more money adults with diplomas in different age brackets were earning compared to adults without degrees, the difference in the gap between adult men and women and how the lack of a college diploma affects unemployment in various states.

"I think as we're seeing more and more of the population go on for more advanced degrees," Cahill said. "We're at the point where most of the professional and knowledge-based opportunities are unavailable to those without a college degree."

Another issue that the College Board reported was the difference between men and women when it came to pitting the median incomes of college graduates against high school graduates.

Sandy Baum, senior policy analyst at the College Board and a professor of economics at Skidmore College, addressed this issue among others.

"The real issue here is that at every level of education, women earn significantly more than men," she said. "However, female high school graduates have particularly few options for reasonable wages. The male/female gap is greater for high school grads than for college grads."

Among female adults, the median income of college graduates is 70 percent higher in 2005 than high school graduates, Baum said. As for men, the median income is 63 percent greater. Since 1975, the female gap has always been greater.

With such a widening gap between high school and college graduates in terms of yearly income, there is a general consensus that something must be done in the near future to prevent the growing problem.

"The more global nature of our economy and the competition we're facing from other countries for lower-wage labor makes it more and more important for people to have some form of post-high school education," said John Palmer, professor of economics. "That means we have to make more effort to figure out how to provide the kind of relevant job training and education for people who aren't going on going on to earn college degrees."

The perpetuation of inequality is a very big problem in society, Baum said.

"It's about money, but even among those with similar incomes, children's education levels are correlated with those of their parents," she said. "Reducing financial barriers for low- and moderate-income students and improving elementary and secondary schools are parts of (a possible) solution."

In today's job market, it is not only becoming important for a bachelor's degree, but for a master's degree, said Matt Cohen, a freshman broadcast journalism major.

"People who run businesses are looking for a good, sound education in their employees," he said. "I think that in today's world, a college degree is becoming ever more important. It prepares you for the rest of your life and those without it start their careers at an extreme disadvantage to those who have one."