Common sense and economic data have tended to diverge when looking at the value of a college degree. In unionized government jobs, such as teaching, the degree credential has obvious value. But what about learning “business” from professors whose only business experience is depositing checks from an employer? Or learning about victimhood from PhD victims? How do these things make a person more valuable to an employer than a smart high school graduate? And how can this learning make up for 4+ years out of the workforce?
The St. Louis Fed addresses the Great American College Fraud in “Is College Still Worth It? The New Calculus of Falling Returns”:
Among families whose head is White and born in the 1980s, the college wealth premium of a terminal four-year bachelor’s degree is at a historic low; among families whose head is any other race and ethnicity born in that decade, the premium is statistically indistinguishable from zero. Among families whose head is of any race or ethnicity born in the 1980s and holding a postgraduate degree, the wealth premium is also indistinguishable from zero. Our results suggest that college and postgraduate education may be failing some recent graduates as a financial investment.
This is consistent with the test results described in Academically Adrift: Limited Learning on College Campuses, which notes that the college students who are good at writing and thinking, as measured by the Collegiate Learning Assessment (CLA), are mostly those who were already good at this before they matriculated. The college courses that common sense suggested would be unhelpful were, in fact, unhelpful in moving their CLA scores.
- Malcolm Gladwell video (hurts my fingers to type that) discussing research that students who go to elite schools are more likely to drop out of demanding majors, such as science, when they compare themselves to the geniuses in the classroom (i.e., don’t bribe your child’s way into an elite school if you want that child to graduate with a STEM degree)