The 2016 edition of Education Pays 2016: The Benefits of Higher Education for Individuals and Society summarizes the earning and employment patterns of U.S. adults with different levels of education. The report uses data on earnings and other crucial factors affecting revenues such as gender, race/ethnicity, occupation, and college major. The report shows the importance of postsecondary education, as individuals with higher levels of education earn more in comparison to individuals with high school diplomas as their highest qualification.
The biggest lesson from the report is that college education pays. Ma, Pender & Welch (2016) insist on the importance of college education in improving one’s earnings. According to Ma et al. (2016) earnings are the primary benefits of higher education and they tended to overshadow other outcomes. The society focuses on earnings as the significant benefit because of the cost of higher education. Higher education does not necessarily imply a college degree or higher qualifications as an associate degree has a considerable payoff. In 2015, the median earnings for a bachelor’s degree holder working full time was $24,600, which is 67% higher than the median income for high school graduates. Bachelor’s degree holders pay $6,900 more in taxes and receive $17,700 in after-tax income in comparison to high school graduates. Individuals with a college degree are more likely to be at the upper end of the income distribution than those with high school diploma only. Individuals with college degrees are more likely to be promoted to managerial positions which attract better earnings, and within a few years, they experience a significant increase in income. A four-year college graduate who enrolls at the age of 18 is expected to earn enough to pay full college tuition, books and supplies without grant aid four years after graduation in comparison to high school graduate who is expected to make enough by the age of 34 (Ma et al., 2016). The median associate degree holder earns enough to pay for tuition, books, and supplies by the age of 30.
Delegate your assignment to our experts and they will do the rest.
Given the financial reward of higher education, many people now pursue higher education to improve the economic standing (Kezars et al., 2015). The report uses adequate statistics to show the increasing high school and college enrollment since the mid-20th century. The percentage of high school graduates who enroll in college immediately increased from 51% in 1975 to 63% to 69% in 2015. 65% of American adults between the ages of 25 to 34 had at least some college experience in 2015, which is an increase from 57% in 2000 and 30% in 1970. The number of adults with a bachelor’s degree increased from 16% in 1970 to 36% in 2015 (Ma et al., 2016). The unemployment rate is quite low for individuals with college degrees in comparison with high school graduates. In 2015, the unemployment rate for the 25 to 34 age group was at 2.6% in contrast to 8.1% for high school graduates.
Another lesson is that many factors affect college enrollment and completion. These factors make it impossible for everyone to benefit equally from high school and college education. For example, men and women have different earnings even when they have the same qualifications. The socio-economic class of parents also affect education and earning. In 2015, 82% of high school graduates from highest family income group (over $100,010) enrolled immediately in college comparison to 62% from middle income quintile ($37,000 to 60,300) and 58% of the lowest income quintile (below $20,582).
The report also shows that the differences in earnings are affected by age group, gender, race/ ethnicity, occupation, college major and even location. According to Ma et al. (2016), the median earnings for females between the age of 25 and 34 was at $23,200, which represents 84% higher than the median earnings of high school graduates. The median earnings for males between 25 and 34 were at $26,200. The gaps in earning between men and women have been decreasing over the years as more women began pursuing educational and career development. The college enrollment statistics between male and females changed in 1989 when the number of women exceeded the number of males. Female enrollment has been higher by two to six points since 1989, even though the female earning continue to be slightly lower. The report also explores the difference in female earnings with high school and higher qualification. The median earning for a four-year college graduate was $20,500, and it exceeded the median female high school graduate by 66%. The median income for a four-year male college graduate was $29,800 in 2015, and it exceeds the median income for a male high school graduate by 72%.
College enrollment in the 25 to 34 age group is the highest, and it has proliferated since the 1970s and stabilized at 28% to 29%. In the 1940s, 86% of adults between 25 and 34 had no postsecondary education experience, and in 1980 it had decreased by 55% (Ma et al., 2016). In 2015, 36% of the 24 to 34 age group at least had a bachelor’s degree while 10% had associate degrees. The number of older adults holding degrees was lower than the 25 to 34 age group. 42% of the 50 to 64 age group had either associates, bachelors or higher qualifications; this number is lower as the 24 to 34 age group has time to pursue higher education.
The gaps in college enrollment and graduation among whites, blacks and Hispanic is different (Delaney & Dharmapala, 2017). In 2005, blacks and Hispanics were 11% lower in college enrollment in comparison to whites, but in 2015, the gap had fallen by 8 percent for black students and 4 percent for Hispanic students. College enrollment has generally increased among all ethnicities. College enrollment for Hispanics rose from 48% in 2000 to 65% in 2015. According to NCES (2016), college enrollment is higher among Asians in comparison to other ethnicities. 85% of Asians enrolled in college in the fall of 2015 within a year of graduating from high school. Between 2013 and 2015, earnings of Asians bachelor’s degree holders between the ages of 25 to 34 working full time was twice the earnings of highest graduates (Ma et al., 2016). The earnings for bachelor degree holders relative to high school diploma holders for other race/ ethnic groups were smaller.
Another factor affecting college enrollment is high school performance. Students who perform well in high school are more likely to enroll in college immediately after high school. According to Ma et al. (2016), over 90% of students who scored the most upper quartile in math enrolled in college immediately. The report also shows that math quartiles are positively correlated with socioeconomic status (SES) quartiles. Among students with lowest math quartile, 38% were from the lowest SES quartile, and 10% were from the highest SES quartile while only 8% from the lowest SES quartile were in the most upper math quartile. Apart from excellent high school scores, students from high SES are likely to enroll in college more because they can afford tuition for private and prestigious colleges. High school performance also affects college completion as high school graduates with math scores in the highest quartile finish college six years later with all the credentials (Shapiro et al., 2015). The students’ SES also affects college completion. Students from low SES often enroll for part-time classes, and they take longer to complete college.
College participation in the US is different across states. The percentage of high school graduates joining college was highest in Massachusetts, Connecticut and Minnesota and lowest in District of Columbia and Nevada. The national average for college enrollment is at 50%, and more than half of the states have achieved the national average. Arkansas and Mississippi have 50% college enrollment, and yet 21% of adults in the two states have bachelor’s degree. The District of Columbia has the lowest college enrollment at 31%, yet the highest attainment as almost all college students’ complete college.
The report shows that the benefits of college education extend to other aspects of life, particularly social and political aspects. College graduates have a higher chance of the upper end of income distribution in comparison to high school graduates within the same social class. College graduates also have a higher chance of social mobility. A study by Pew Charitable Trust in 2012 found out that 47% of adults without a bachelor’s degree in the low-income group remained in the group in comparison to 10% of those with at least a bachelor’s degree. College degree also reduces reliance on public assistance programs such as SNAP with only 8% of college degree holders over the age of 25 relying on SNAP in comparison to 29% of high school graduates. College graduates are more likely to be health conscious in comparison to high school graduates, they exercise and avoid risky behaviors that affect their health negatively. For instance, the smoking rate among college graduates has declined to 8% in comparison to 26% of high school graduates who smoke in 2015. College graduates are more likely to participate in civic activities such as voting in comparison to high school graduates.
The report is comprehensive, and it paints a real picture of the education and employment statistics in the US in 2016. The report covers many issues such as earnings over time, earning paths, earnings for different college majors, and employment statistics for different institutions among other topics, unemployment, retirement and health plans. The report communicates with the readers well, and it uses tables, charts, themes, and examples to simplify statistics. The diagrams used are clearly labeled to help readers make sense of the data.
A notable flaw in the report is that it does not make recommendations on how to improve education and employment in the U.S. It is quite evident that there are disparities in educational attainment and employment caused by SES, race/ethnicity, and gender. For instance, 2016 statistics show that students from low SES are more likely to fail math in high school in comparison to students from high SES, and this affects their college enrolment and completion. The government has to put in place efforts to minimize disparities in education and employment with a focus on minority groups including blacks, Latinos, women, and low SES group. Higher education professionals rely on the report for up-to-date information on education and employment; hence the report should also include recommendations on how to improve the education system. Some disparities such as low college graduation among minority groups have reduced over the years; thus the report should make current recommendations to help higher education professionals make the necessary changes.
In conclusion, the Education Pays 2016: The Benefits of Higher Education for Individuals and Society report is educational. The report summarizes education and employment statistics in 2016 with the aim of showing that higher education pays. Individuals with higher education not only earn more, but they have access to many opportunities enabling them to improve their social, economic and civic engagement.
References
Delaney, J. A., & Dharmapala, D. (2017). “Pay It Forward” And Higher Education Subsidies: A Median Voter Model. Contemporary Economic Policy , 35 (4), 615-629.
Kezar, A., Chambers, A. C., & Burkhardt, J. C. (Eds.). (2015). Higher education for the public good: Emerging voices from a national movement . John Wiley & Sons.
Ma, J., Pender, M., & Welch, M. (2016). Education Pays 2016: The Benefits of Higher Education for Individuals and Society. Trends in Higher Education Series. College Board .
Pew Charitable Trusts. (2012). Pursuing the American Dream: Economic Mobility Across Generations . Washington, DC: The Pew Charitable Trusts.
Shapiro, D., Dundar, A., Wakhungu, P.K., Yuan, X., & Harrell, A. (July 2015). Transfer and Mobility: A National View of Student Movement in Postsecondary Institutions, Fall 2008 Cohort (Signature Report No. 9). Herndon, VA: National Student Clearinghouse Research Center.
