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4 5 1 4 1 2 1 . Some newly minted college graduates struggle to find work. Others accept jobs for which they feel overqualified. A new set of income statistics answers those questions quite clearly: Yes, college is worth it, and it’s not even close. For all the struggles that many young college graduates face, a four-year degree has probably never been more valuable. The pay gap between college graduates and everyone else reached a record high last year, according to the new data, which is based on an analysis of Labor Department statistics by the Economic Policy Institute in Washington. Americans with four-year college degrees made 98 percent more an hour on average in 2013 than people without a degree.
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That’s up from 89 percent five years earlier, 85 percent a decade earlier and 64 percent in the early 1980s. The singer Jill Scott, who was being given an honorary doctorate, at graduation ceremonies at Temple University in Philadelphia this month. The pay disparity between those with college degrees and those without continues to grow. There is nothing inevitable about this trend.
If there were more college graduates than the economy needed, the pay gap would shrink. We also have too few people who are prepared for college. It’s important to emphasize these shortfalls because public discussion today — for which we in the news media deserve some responsibility — often focuses on the undeniable fact that a bachelor’s degree does not guarantee success. When experts and journalists spend so much time talking about the limitations of education, they almost certainly are discouraging some teenagers from going to college and some adults from going back to earn degrees. Those same experts and journalists are sending their own children to college and often obsessing over which one.
The much-discussed cost of college doesn’t change this fact. According to a paper by Mr. Autor’s paper — building on work by the economists Christopher Avery and Sarah Turner — arrives at that figure first by calculating the very real cost of tuition and fees. This amount is then subtracted from the lifetime gap between the earnings of college graduates and high school graduates. This calculation is necessarily imprecise, because it can’t control for any pre-existing differences between college graduates and nongraduates — differences that would exist regardless of schooling. In a similar vein, the new Economic Policy Institute numbers show that the benefits of college don’t go just to graduates of elite colleges, who typically go on to to earn graduate degrees. The wage gap between people with only a bachelor’s degree and people without such a degree has also kept rising.
Tellingly, though, the wage premium for people who have attended college without earning a bachelor’s degree — a group that includes community-college graduates — has not been rising. The big economic returns go to people with four-year degrees. But what about all those alarming stories you hear about indebted, jobless college graduates? The anecdotes may be real, yet the conventional wisdom often exaggerates the problem.