Richard Vedder writes for the Martin Center about contrasting approaches to the future of higher education.
There has been mounting evidence that the financial payoff from the traditional bachelor’s degree is declining, particularly for men. For example, Census Bureau data suggest that, from 2005 to 2016, the average earnings differential for male workers holding bachelor’s degrees compared with those holding high school diplomas fell from $39,440 to $37,653 (in 2016 dollars)—at a time when college costs were rising.
Other evidence from the New York Federal Reserve Bank confirms that a large portion of college graduates are underemployed, working jobs traditionally held by high school graduates.
There are two interpretations of this data, one by the general American public and the second from the “College for All” crowd, the cheerleaders for higher education who believe the nation benefits from more students earning more degrees.
Turning to the first interpretation, in light of rising costs and at best stagnant benefits, more Americans are simply not going to universities. The National Student Clearinghouse reports enrollments are down for the sixth consecutive year, which is unprecedented in modern American history. Even during the Great Depression, enrollments grew.
The College for All interpretation is that the diminishing payoff to the bachelor’s degree means students need to get more degrees, specifically master’s degrees.
