tag:blogger.com,1999:blog-7905515.post6950935017467682342..comments2024-03-14T11:09:32.759-05:00Comments on Falkenblog: The Education 'Risk' PremiumEric Falkensteinhttp://www.blogger.com/profile/07243687157322033496noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7905515.post-3888692041341731062011-01-06T13:11:34.193-06:002011-01-06T13:11:34.193-06:00The decision to attend and complete college is pro...The decision to attend and complete college is probably one of the decisions least susceptible to straight economic/$ analysis. College has radically different utilities for different users: compare the professional student who loves academia and gets good grades without extreme effort to the marginal student who feels stifled in the classroom and has to struggle to pass classes. Many people would be significantly less happy with a $50k/year office job than they would be with a $40k/year trades job. Also most of the people making the decision do not have their own money to put at risk on an education, and are either using parental $ (a decision full of irrationalities and emotions) or borrowing without really understanding the cost of debt.najdorfnoreply@blogger.comtag:blogger.com,1999:blog-7905515.post-26085304116091092282011-01-04T17:08:09.466-06:002011-01-04T17:08:09.466-06:00Oh come on. You really believe that the average a...Oh come on. You really believe that the average annual income of a graduate from a top 20,30 or 40 U.S. university (that would include all the Ivys, the top tech and California schools etc.) might not be leaps and bounds greater than the average all-college graduate let alone the average working American?<br /><br />Maybe within the Peace Corps.Mercurynoreply@blogger.comtag:blogger.com,1999:blog-7905515.post-41167247630704995002011-01-04T14:53:34.674-06:002011-01-04T14:53:34.674-06:00Mercury
Exactly what evidence is their that a t...Mercury <br /><br /><br />Exactly what evidence is their that a top college increases wages. In post-graduate degree it appears it does. Undergrad I have a hard time believing that based on what I have seen.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7905515.post-18581545363449277052011-01-04T12:18:11.101-06:002011-01-04T12:18:11.101-06:00I don't see what the puzzle is. Let's assu...I don't see what the puzzle is. Let's assume the 80% wage premium is real yet only 40% take this "carrot."<br /><br />College (should) involve some real difficulty plus it's time consuming and expensive. That's a big hurdle for a lot of people even if the lifetime earnings math still favors getting that BA/BS. In fact, if they can't do that math...that says a lot.<br /><br />That math is about averages anyway. The very top earning college grads are probably skewing the numbers and hiding a lot of people who are just getting by or are still very much under water quite a ways down the road...especially these days.<br /><br />I'd also be wary of any data that reaches too far back - like to a time when there were much fewer colleges that were more selective and turned out much higher caliber graduates.<br /><br />The "dumb money" here is the group that pays a decent amount to go to a crappy college, not the group that could but chooses not to go to college. Let's see some stats on ethnic identity majors who graduate with $150k in debt.<br /><br />If you can get into a top college - go. If you can get someone else to pay for college - go. Outside of that, don't assume a wage premium.<br /><br />The only sure thing in America right now is the government job wage premium. You can take that to the bank.Mercurynoreply@blogger.comtag:blogger.com,1999:blog-7905515.post-39765669394304300612011-01-04T12:04:23.971-06:002011-01-04T12:04:23.971-06:00i'm not sure how much of this extends to other...i'm not sure how much of this extends to other fields/countries but i'm not sure phd is an heavier investments then MA: talking from my own point of view, i get paid a lot considering how much time i actually spend working, 4 year secured contract and top notch healthcare insurance. Honestly, when i started (2 months ago) i don't think i would have had such a sweet offer on the private side of the fence (plus my MA thesis would not have been considered, whereas now i'd like to think that i'm compounding my earlier work)Anonymousnoreply@blogger.com