College Degrees and Career Earnings

Overview

A study by the Georgetown University Center on Education and the Workforce found that an increase in college degree attainment is linked to a $14.2 trillion gain in lifetime earnings for U.S. workers.
The proportion of U.S. adults with a college degree increased from 38.5% to 45.2% between 2010 and 2020.

Economic Payoffs: Increased college degree attainment is associated with significant economic payoffs and nonmonetary benefits.
- Earnings premiums are substantial for individuals with college degrees compared to high school graduates.
  - Associates Degree: $495,000 more over a lifetime.
  - Bachelors Degree: $1 million more.
  - Graduate Degree: $1.7 million more.
Net Lifetime Earnings Gains:
- Total estimated gains of $14.2 trillion across the population.
- Associates Degree: $641 billion in gains.
- Bachelors Degree: $5.9 trillion in gains.
- Graduate Degree: $7.6 trillion in gains.

Racial/Ethnic Gaps: Despite increases in degree attainment, significant gaps in earnings and attainment persist among different racial and ethnic groups.
- White adults have higher earnings compared to Black/African American, Hispanic/Latino, and Indigenous adults with the same level of education.
- Asian/Asian American adults outperform white adults but saw a slight decline over the decade.
Gender Gaps: Women surpass men in degree attainment within nearly all racial/ethnic groups, yet men have higher lifetime earnings.

Washington, D.C. saw the largest increase in degree attainment, followed by North Carolina, Pennsylvania, Tennessee, and Kentucky.
Oklahoma had the smallest gain.
Each state benefited economically from increased degree attainment, with gains ranging from $9 billion in Wyoming to $1.9 trillion in California.

The report highlights noneconomic benefits of higher education, such as improved health, lower crime rates, greater resistance to authoritarianism, increased personal happiness, and higher civic participation.

While the overall increase in college degree attainment has benefitted the economy and society, gaps in racial and gender equity in education and earnings persist.