A recent study analyzing Texas public college students reveals that obtaining a bachelor’s degree generally leads to significantly higher earnings over time compared to those without a degree, regardless of major.
The Postsecondary Commission, a nonprofit focused on education, tracked approximately 29,000 students who enrolled in bachelor’s programs during the 2008-09 academic year. Researchers measured graduates’ “cumulative net value-added earnings” over 15 years, comparing their earnings to those of high school graduates while deducting expenses like tuition, room and board, and income lost during college attendance.
On average, graduates earned nearly $87,000 more than non-degree holders over 15 years, even after accounting for the full cost of college. Majors such as engineering and architecture showed the highest financial returns. However, even liberal arts graduates, often considered lower earning, earned about $35,000 more than peers without bachelor’s degrees.
Michael Itzkowitz, president of the higher education consulting firm HEA Group, commented on the findings, stating that pursuing a bachelor’s degree “is likely making a wise investment,” with financial gains expected to grow as graduates advance in their careers.
Why it matters
This study offers valuable insight amid rising skepticism about college affordability and value. It highlights that even when factoring in the cost and lost income during schooling, earning a bachelor’s degree remains financially advantageous in the long run. The findings can inform students, families, and policymakers weighing the economic benefits of college education.
Long-term earnings from other credentials
The analysis also explored the returns on associate degrees and certificate programs. Most associate degrees yielded positive returns, with construction trades leading at about $72,000 in added earnings over 15 years. Conversely, some two-year programs, such as culinary services and logistics, resulted in net financial losses of roughly $13,000 and $15,000 respectively.
Certificate programs showed mixed outcomes as well. Construction-related certificates provided the highest returns at approximately $48,000 over 15 years, whereas fields like social sciences and information technology certificates experienced net losses.
Background
The Postsecondary Commission study is specific to Texas and may not fully reflect conditions in other states, where economic factors and job market demands differ. The study’s rigorous methodology includes accounting for opportunity costs, making it a more comprehensive measure of the actual financial return on educational investments.
As college costs continue to rise nationally, studies like this provide a crucial data point for understanding the long-term economic value of degrees across various disciplines.
Sources
This article is based on reporting and publicly available information from the following source:
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