Economics of Education
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Updated 4/8/18         Please link to and 
 

1. More Education and Work Success Means More Income

2. What You Study Determines Earnings

3. Matching Education Level Demand With Supply Is Useful

4. Major Determines Economic Return on Investment

5. Bachelor's Degree Investment Not for Everyone

6. Graduate Economic Success Will Not Get Better Soon

7. Economists Advise on  Economics of Education

8. Human Capital Model and the Role of Education 20 min. video

1. More Education and Work Success
Means More Income

 

 

2. What You Study Determines Earnings
Top AA Earners Earn More Than Bottom Half of Bachelor's Graduates
    More Data Career Guidance       Lifetime Earnings

 

Pay
%

Associate's
Starting Pay

Bachelor's
 Starting Pay

   Job Type

Bachelor's Premium With 10 Years Experience

10th

$21,000   

$25,400

Admin.Assist.

10% 4%

25th

$26,700   

$32,900

Dental Hygienist

9% 5%

50th

$35,100   

$43,200

Registered Nurse

4% 6%

75th

$46,700  

$56,900

Construction Manager

17% 19%

90th

$61,600  

$73,800

Inside Sales Rep.

15% 24%

Data from payscale.com/

Mark Cuban "Study and Work at What You Enjoy"    Career Tips from Warren Buffett

3. Matching Education Level Demand With Supply Is Useful

Demand is About 27% of Workforce

"

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Supply Up More Than Demand

Source

 

 

Supply is about 33% of Workforce

Oversupply Pushed Wages Down for Lower Levels

 

Image result for college graduate graphs
Editor's Note: My guess is this is Bachelor's degree only.
Many of our best and brightest earn graduate degrees. 
 

Millennial Educational Attainment and Income

 4. Major Determines Economic
Return on Investment

Major matters - The lifetime earnings of an education or arts major working in the service sector are actually lower than the average lifetime earnings of a high school graduate.

from brookings.edu

 

Economic Return Based Upon What You Learn Not Where

 

5. Bachelor's Degree Investment
Not for Everyone

Source

   
 

Infographic: The Most (and Least) Worthwhile Degrees | Statista

hamilton project graph copy

Certificates Programs Not Always a Good Investment

Many Do Not Finish Though Profits Have Incentive to Keep Students In Class

ge2

Source

Only the Top Public Students Make a Return on Investment

The earnings gap doesn't tell the whole story.

See Maximizing the College Experience

 

Source

 

 

6. Graduate Economic Success Will Not Get Better Soon

         

Only Half of First-Time College Students Graduate in 6 Years  "...just over half of them (54.1 percent) had graduated within six years. Another 16.1 percent were still enrolled in some sort of postsecondary program after six years, and 29.8 percent had dropped out altogether." from  nytimes.com/  by CATHERINE RAMPELL

 

Image result for college graduate graphs

Future Demand for Education Demand

In a Flat World our best and brightest students are in a competitive
struggle with the best and brightest from around the world.
Their wealth creating ideas will quickly spread around the world.

More Intelligent Computers mean the education level of workers
replaced will increase.

Robots mean less Workers. Whether it's portable flexible cheap
robots in manufacturing or robots cleaning offices and homes
or 3-D printers creating everywhere, required hours per task
will dramatically drop.

Income Inequality and Individual Wellbeing is a Political Question

7. Economists Advise on  Economics of Education

Paul Krugman: rising wage premium for higher education is over 

L.Thurow: little/no payoff from a little bit more education

C. Murray: encouraged more investing in our best and brightest

A. Greenspan: solving skills shortage with education reform will take years.

P. Drucker: stress what learners do well, schools don't do that

W. Antoniotti  duration and continuation not speed are important.

For more economist opinions concerning  education visit Educating the Class of 2034

Educating the Class of 2034

Editors Note: Those who determine spending on education have decided that all students are created equal but remember that "some students were created more equal than others. People with the personal characteristics it takes to complete college are substantially above average and would make more than average even without college. Ask Bill Gates or my talented buddy Alton who never finished but did very well.

See Education Libraries

Suggestions to antonw@ix.netcom.com

Suggestions to Walter Antoniotti

Please