Sunday, November 15, 2009

The Value of Education

According to EarnMyDegree.com, education has a significant effect on a worker's annual and lifetime earnings:
You can make much more money by earning a college degree.

The data shows that a college degree correlates directly to your salary range—and the relationship between compensation and education level is becoming even more prominent.

At the turn of the 20th century, American working life was different. Only a minority of adults had a high school diploma. But by 1975, full-time workers with a Bachelor's degree had 1.5 times the annual earnings of workers with a high school diploma. By 1999, this ratio had edged up to 1.8. As our society has continued to evolve, education has become the optimal route to professional success: pursuing a degree is the best way to receive training, to gain expertise in a given field, and even to guide you and help you make choices about your career.

Today, a formal, focused education is an essential ingredient. Employers have increasingly used diplomas and degrees as a way to screen applicants. And once you’ve landed the job you want, your salary will reflect your credentials. On average, a person with a Master's degree earns $31,900 more per year than a high school graduate—a difference of as much as 105%!

Average Annual Earnings for College Graduates and Non-Graduates
Professional Degree
$109,600
Doctoral Degree
$89,400
Master's Degree
$62,300
Bachelor's Degree
$52,200
Associate's Degree
$38,200
Some College
$36,800
High School Graduate
$30,400
Some High School
$23,400
Average Annual Earnings—Different Levels of Education.
Source: U.S. Census Bureau, Current Population Surveys, March 1998, 1999, and 2000.
Making a Lifetime of Difference.

By the time you comfortably retire, you’ll look back and see that your earnings increase, as figured by your level of education, has compounded over your lifetime.

A person with a Bachelor's degree will earn, on average, almost twice as much as workers with a high school diploma over a lifetime ($2.1 million compared to $1.2 million). This is a result of not only higher starting salaries for people with higher education levels, but also the sharper earnings growth over the course their careers.

Work-Life Earnings for Full-Time Employees (in $ millions)
Professional Degree
$4.4
Doctoral Degree
$3.4
Master's Degree
$2.5
Bachelor's Degree
$2.1
Associate's Degree
$1.6
Some College
$1.5
High School Graduate
$1.2
Some High School
$1.0
Average Lifetime Earnings—Different Levels of Education.
Source: U.S. Census Bureau, Current Population Surveys, March 1998, 1999, and 2000.

Retrieved November 15, 2009.

2 comments:

  1. Break it down a little further and it not so clear. That because 20% of the college grads make as much money as the other 80% combined.

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  2. Statistics is a stubborn thing, however there are a lot of contradictory examples. There are a lot of rich and successful people who don`t have any degree. At the same time there are a lot of people who have their diploma but cannot find job or admit that they have never used it. Personally I am a student and now I spend all my time for writing college papers (check MyEssayService for your papers) and money for education just because I know that diploma is demanded even if you work in Mc. Donald’s.

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