In today’s highly competitive job market, higher education has become more important than ever for career and financial success. With rising tuition costs, however, there is debate over whether the return on investment is worth it. By looking at data and real-world examples, a strong case can be made that higher education leads to positive returns through increased lifetime earnings, lower unemployment, and non-monetary benefits. Though costs are high, they pay off in the long run with compounding personal and societal gains.
College graduates earn substantially more over their lifetimes
Numerous studies have conclusively shown that those with college and postgraduate degrees earn substantially more over their lifetimes compared to those with only a high school education. According to research by the Federal Reserve Bank of New York, the average lifetime earnings of a bachelor’s degree holder is over $1 million higher than that of a high school graduate. Comparing median weekly earnings, college graduates earned 62% more. This lifetime earnings premium exists across all majors and institution types. While incomes vary by occupation, on average, those with higher education qualifications start off earning more at entry level positions straight out of school and continue to have greater earning potential throughout their careers.
Higher degrees lead to dramatically lower unemployment
Pursuing higher education, especially a bachelor’s degree or higher, also provides a significant shield against unemployment. During economic downturns and recessions, those without post-secondary qualifications tend to suffer higher job losses and longer periods of unemployment. According to the Bureau of Labor Statistics, the unemployment rate of high school graduates in 2020 was 9.0%, compared to just 5.5% for college graduates. Having an advanced or professional degree reduces the unemployment risk even further. Individuals are not just more likely to find jobs with higher education, but obtain greater financial stability and security over the long-term.
Non-monetary returns include better health, job satisfaction, and quality of life
In addition to direct financial returns, investment in higher education has been linked to a variety of indirect societal and personal benefits. Studies show that college graduates have lower smoking rates, lower obesity, lower infant mortality, and greater life expectancy. Education is also correlated with greater job satisfaction, as those with higher qualifications have greater upward mobility, autonomy, and engagement at work. Participation in higher education is also connected to behaviors like increased voting and volunteerism. For children of degree holders, there are additional positive effects on their cognitive development and education levels. Though hard to quantify, these social and health returns demonstrate further value from committing to higher learning.
While costs of college and postgraduate degrees continue to rise, the long-term returns in the form of higher earnings, employment, health, and overall quality of life make higher education a worthwhile investment. By finishing a bachelor’s or advanced degree, individuals see substantial monetary and personal benefits that compound over their lifetimes and positively impact society.