08/27/2003 06:41:40 PM

Value of Higher Education.

This evening on The Nightly Business Report on PBS the Money File segment was by Julie Stav entitled The Positive Return On A College Education Investment. In it she makes a logical mistake when stating:
If there is one place where you really get your money's worth, it's in education. Salaries of high school graduates have averaged over $30,000 a year, compared to over $53,000 for an employee with a college degree.
Since in general the smarter and more ambitious students do go to college, it is necessary to separate out that fact from the value of a higher education. To properly assess the value of a college education, it is necessary to compare students of equal ability who make different choices about going to college. Many years ago I vaguely remember reading about such a study and it showed that for students of equal abilities, the time and money lost spent going to college was never made up. (If you know about such a study please add a comment here or email me about it.) This is not to say a higher education is not valuable or important; there are other benefits besides money.

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