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Education continues to pay
Higher degrees decrease rate of unemployment
By Robert Carreira/cochise college cer
As we slowly climb out of the worst economic downturn in decades, one fact remains true: Education continues to pay! One of the best things one can do to protect against recessions is to get more education. If you're one of the unfortunate ones who has been hit by the recession, one of the best ways to ensure a quick rebound is more education.
According to the U.S. Bureau of Labor Statistics, the unemployment rate in the United States in 2009 for people with less than a high school diploma was 14.6 percent. For those who went on to earn a high school diploma or GED, the rate dropped to 9.7 percent. If you get some college-even if you don't earn a degree-the unemployment rate drops to 8.6 percent.
For those who go on to earn a college degree, the employment picture gets even better. In 2009, the unemployment rate for those with an associate degree-like those offered by Cochise College-was 6.8 percent. But don't stop there! The unemployment rate for those with a bachelor's degree was 5.2 percent.
Some people choose to go beyond a bachelor's degree. For those who've earned a master's degree, the unemployment rate last year was 3.9 percent. Beyond that you can earn a doctoral degree or a professional degree. For those with a doctoral degree, such as a Ph.D., the unemployment rate was 2.5 percent in 2009. For those with a professional degree, such as a law degree, the unemployment rate was 2.3 percent.
Not only does education decrease your likelihood of being unemployed, but it also increases the amount of money you earn. For those with less than a high school diploma, the median weekly earnings in the United States in 2009 were $454. This jumps nearly 40 percent to $626 for those who complete high school or earn a GED. Median weekly earnings jump another 12 percent to $699 for those who go to college but don't finish.
For those who complete an associate degree-such as Cochise College graduates-their income climbs another 9 percent to $761 a week. For those who finish their bachelor's degree, weekly earnings climb by more than a third to $1,025. Those who earn a master's degree see median weekly earnings climb by an additional 23 percent to $1,257. For those who earn a professional or doctoral degree, median weekly earnings climb 22 percent to $1,529 and $1,532, respectively.
So is the investment in education worth it? After all, it costs money to go to college.
According to The College Board, a not-for-profit membership association of more than 5,700 schools, colleges, universities, and other educational organizations, the average cost of tuition and fees for 2 years of college at a public institution in the United States in 2009-2010 was $5,088. According to BLS, a graduate with an associate degree will earn $7,020 more than a high school graduate each year. If you include the cost of textbooks, the cost of an associate degree can be recouped in about a year.
For a bachelor's degree, the average cost for tuition and fees for all 4 years at a public institution was $28,080 in 2009-2010. According to BLS, a graduate with a bachelor's degree will earn about $20,748 a year more than a high school graduate. Factor in textbooks and the cost of a bachelors degree can be recouped in less than 2 years. It can be recouped even faster for students who do the first 2 years at a community college.
There are, of course, other costs associated with attending college. These include opportunity costs such as foregone income while attending college. There's also the cost of room and board, although that must be paid regardless of whether one attends college.
If one finances education through student loans, this also drives up the cost, particularly if the graduate opts for a long-term repayment plan. And finally, not all college graduates will earn the median wage for their education level-in fact, half of all graduates will earn less and the other half will earn more. Generally, those who major in math, science, and career fields tend to earn more than those who major in arts and humanities. And over time, those who once earned less than the median have a good chance at earning more than the median.
The point remains quite valid that education generally pays for itself within a few years. So the question should not be whether you can afford to go to college, but whether you can afford not to. If you've been impacted by the recent recession, or simply want to protect yourself against the next one, register for classes now. Fall classes at Cochise College begin on August 23.
Robert Carreira, Ph.D. is director of the Center for Economic Research at Cochise College. If you have any questions on the economy, please contact the CER at (520) 515-5486 or by email at cer@cochise.edu. Check out the CER's website at www.cochise.edu/cer.
By Robert Carreira/cochise college cer
As we slowly climb out of the worst economic downturn in decades, one fact remains true: Education continues to pay! One of the best things one can do to protect against recessions is to get more education. If you're one of the unfortunate ones who has been hit by the recession, one of the best ways to ensure a quick rebound is more education.
According to the U.S. Bureau of Labor Statistics, the unemployment rate in the United States in 2009 for people with less than a high school diploma was 14.6 percent. For those who went on to earn a high school diploma or GED, the rate dropped to 9.7 percent. If you get some college-even if you don't earn a degree-the unemployment rate drops to 8.6 percent.
For those who go on to earn a college degree, the employment picture gets even better. In 2009, the unemployment rate for those with an associate degree-like those offered by Cochise College-was 6.8 percent. But don't stop there! The unemployment rate for those with a bachelor's degree was 5.2 percent.
Some people choose to go beyond a bachelor's degree. For those who've earned a master's degree, the unemployment rate last year was 3.9 percent. Beyond that you can earn a doctoral degree or a professional degree. For those with a doctoral degree, such as a Ph.D., the unemployment rate was 2.5 percent in 2009. For those with a professional degree, such as a law degree, the unemployment rate was 2.3 percent.
Not only does education decrease your likelihood of being unemployed, but it also increases the amount of money you earn. For those with less than a high school diploma, the median weekly earnings in the United States in 2009 were $454. This jumps nearly 40 percent to $626 for those who complete high school or earn a GED. Median weekly earnings jump another 12 percent to $699 for those who go to college but don't finish.
For those who complete an associate degree-such as Cochise College graduates-their income climbs another 9 percent to $761 a week. For those who finish their bachelor's degree, weekly earnings climb by more than a third to $1,025. Those who earn a master's degree see median weekly earnings climb by an additional 23 percent to $1,257. For those who earn a professional or doctoral degree, median weekly earnings climb 22 percent to $1,529 and $1,532, respectively.
So is the investment in education worth it? After all, it costs money to go to college.
According to The College Board, a not-for-profit membership association of more than 5,700 schools, colleges, universities, and other educational organizations, the average cost of tuition and fees for 2 years of college at a public institution in the United States in 2009-2010 was $5,088. According to BLS, a graduate with an associate degree will earn $7,020 more than a high school graduate each year. If you include the cost of textbooks, the cost of an associate degree can be recouped in about a year.
For a bachelor's degree, the average cost for tuition and fees for all 4 years at a public institution was $28,080 in 2009-2010. According to BLS, a graduate with a bachelor's degree will earn about $20,748 a year more than a high school graduate. Factor in textbooks and the cost of a bachelors degree can be recouped in less than 2 years. It can be recouped even faster for students who do the first 2 years at a community college.
There are, of course, other costs associated with attending college. These include opportunity costs such as foregone income while attending college. There's also the cost of room and board, although that must be paid regardless of whether one attends college.
If one finances education through student loans, this also drives up the cost, particularly if the graduate opts for a long-term repayment plan. And finally, not all college graduates will earn the median wage for their education level-in fact, half of all graduates will earn less and the other half will earn more. Generally, those who major in math, science, and career fields tend to earn more than those who major in arts and humanities. And over time, those who once earned less than the median have a good chance at earning more than the median.
The point remains quite valid that education generally pays for itself within a few years. So the question should not be whether you can afford to go to college, but whether you can afford not to. If you've been impacted by the recent recession, or simply want to protect yourself against the next one, register for classes now. Fall classes at Cochise College begin on August 23.
Robert Carreira, Ph.D. is director of the Center for Economic Research at Cochise College. If you have any questions on the economy, please contact the CER at (520) 515-5486 or by email at cer@cochise.edu. Check out the CER's website at www.cochise.edu/cer.
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