Economics of Education
See What You Should Know About Education

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1. More Education, Work Success, More Income

2. What You Study Determines Earnings

3. Matching Demand With Supply Is Useful

4. Determines Economic Return on Investment
 

5. Bachelor's Degree Not for Everyone

6. Graduate Economic Success Staying Low

7. Economists Advise on Education Investing

8. Human Capital Education Model video
 

1. More Education
Means More Work Success
Means More Income

 

2. Academic Rank 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 Add

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

"

 

 

Supply Up More Than Demand

Source

 

Supply is about 33% of Workforce

Oversupply Pushed Wages Down for Many

 

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

   
 

hamilton project graph copy

6. Certificates Programs
 Often Not a Good Investment

Many Students Do Not Finish Bur For-Profit Schools
Have Incentive to Keep Students In Class

Source

Again Top Academic Students Make More But
 Only Top Public Graduates Make a Reasonable Return on Investment

See Maximizing the College Experience

Input Output Analysis

6. Graduate Economic Success Will Not Get Better Soon

         

Future Demand for Education Demand

In a Flat World the US 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 replaced workers will slowly 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