Pass university? Not if you want to earn more money | Personal finance
Where you live after you graduate also affects its value, according to the results of a May 2020 study for the Thomas B. Fordham Institute, a conservative nonprofit think tank.
“In general, college degrees are a good investment, but the return in terms of cosmopolitan areas is phenomenal,” said John Winters, associate professor of economics at Iowa State University, who conducted the study.
In cities, bachelor’s degree holders earn an average of $ 95,229, an 86.2% premium over a worker with a high school diploma, and a 55.7% premium over a high school graduate. holder of an associate’s degree.
Winters says this is mainly because cities have a higher concentration of jobs in fields that often require workers to have four-year degrees, such as technology, finance and marketing. Workers in these fields earn higher wages, resulting in a better return on investment for degrees.
However, Winters’ findings also mean that having a four-year degree is less essential if you want to live in a smaller metropolitan or rural area. Bachelors with a bachelor’s degree in non-urban areas have an average income of $ 67,893, which puts their salary at a 46.4% premium over high school graduates and a premium of 29.6% compared to holders of an associate degree.
Obtaining a degree does not guarantee fairness
In some ways, a college degree can exacerbate income and racial inequalities, such as student debt and the ability to repay that debt, says Marshall Anthony Jr., senior policy analyst at the Center for American Progress, a research organization on public policies.