Rethinking the rise of inequality

Tim Goral's picture
Wednesday, November 13, 2013

Many Americans have come to doubt the proposition that college delivers a path to prosperity.

In a poll conducted last month by the College Board and National Journal, 46 percent of respondents — including more than half of 18- to 29-year-olds — said a college degree was not needed to be successful. Only 40 percent of Americans think college is a good investment, according to a 2011 poll by the Pew Research Center.

On a pure dollars-and-cents basis, the doubters are wrong. Despite a weak job market for recent graduates, workers with a bachelor’s degree still earn almost twice as much as high school graduates. College might be more expensive than ever, but a degree is worth about $365,000 over a lifetime, after defraying all the direct and indirect costs of going to school. This is a higher payoff than in any other advanced nation, according to the Organization for Economic Cooperation and Development.

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