Study: College degree critical to reaching middle class
Attaining a college education is the key to reaching the middle class and is one of America’s most important economic issues, according to a new report by Georgetown University’s Center on Education and the Workforce. People who earn a bachelor’s degree make 84 percent more money in their lifetimes than those who only have a high school diploma, which is up from 75 percent in 1999.
“On average, people with more education and higher attainment make more than people with less education,” said Anthony P. Carnevale, the Center’s director and co-author of the report. “But, major and occupation matter just as much as degree level. For example, 28 percent of people with an associate degree make at least as much as the average bachelor’s degree holder — mostly due to occupational choice.”
People who earn a college degree make $2.1 million on average during their lifetimes, with white college degree holders earning an average of $3.6 million. Meanwhile, those with a high school diploma make between $973,000 and $1.3 million throughout their working careers. Women, African Americans and Latinos with degrees make less, while Asians with graduate level degrees make more than all of their counterparts.
“The vast majority of new jobs require higher skills and if you don’t have a college degree, your chances of being in the middle class are visibly diminished,” said Jamie P. Merisotis, President and Chief Executive Officer of Lumina. “There is a high probability that you’ll be poor without some form of postsecondary education and that makes education one of the most critical factors in our nation’s long-term economic growth plans. A dramatic increase in educational attainment must become a top national priority if we intend to build our labor pool and beat out other countries for the jobs of the future.”
According to the study’s authors, the idea of working your way up from an entry-level position to that of an executive is simply no longer possible without a college degree.
“The idea of getting a high school diploma and working your way up from the mail room to the corner office is a relic of an earlier time,” said Carnevale. “A college degree provides greater career mobility opportunities, greater lifetime earning power and a more promising future. That’s the college payoff.”
Getting a college degree could also help stave off unemployment, according to a separate study by the Center. Researchers found that by 2018, 63 percent of U.S. jobs will require some level of postsecondary education. Yet, only 41 percent of American adults currently hold a college degree.
“Many other countries are faring much better,” said Merisotis. “South Korea, for example, currently has a postsecondary degree attainment rate of 58 percent, a full 18 percentage points higher than the United States. We now stand at 10th in the world which is a far cry from our globe-leading levels just a decade ago.”
