This is a very interesting article by Laurence Kotlikoff – about the economic value of a college education. It is only one scenario – but it is worth looking at.
Study This to See Whether Harvard Pays Off: Laurence Kotlikoff By Laurence Kotlikoff
The notion that education pays and that better education pays better is taken for granted by almost everyone. For college professors like me, this is a very convenient idea, providing a high and growing demand for our services.
Unfortunately, the facts seem to disagree. A recent study by economists Stacy Dale and Alan Krueger showed that going to more selective colleges and universities makes little difference to future income once one accounts for the underlying ability of the student. Their work confirms other studies that find no financial benefit to attending top-tier schools.
It’s good to know that Harvard applicants can safely attend Boston University my employer, and that \”better\” higher education doesn’t pay better. But does higher education pay in the first place?
The answer seems obvious. On average, doctorate holders earn more than those with master degrees, who earn more than those with bachelor degrees, who earn more than high school graduates. How can education not pay?