Recently, the Georgetown University Center on Education and the Workforce released a report on workforce earnings and educational level called The College Payoff: More Education Doesn’t Always Mean More Earnings. Prior workforce studies have indicated that workers with more education have higher earnings and benefited from greater economic stability throughout their careers. The findings of this report suggest there are exceptions to this rule and variations in earnings by field of study, occupation, gender, race, and ethnicity, among others. Some of the report’s findings are below.
- More education usually correlates with higher lifetime earnings.
- Workers with a high school diploma earned a median $1.6 million over a lifetime.
- Workers with associate degrees earned a median $2 million over a lifetime.
- Workers with bachelor’s degrees earned a median $2.8 million over a lifetime.
- Workers with a master’s degree earned a median $3.2 million over a lifetime.
- However, the report demonstrated that higher levels of education did not always lead to higher earnings and less education did not always lead to lower earnings.
- 31% of workers with a high school diploma earned more in lifetime earnings than half of workers with an associate’s degree.
- 28% of workers with an associate’s degree earned more in lifetime earnings than half of workers with a bachelor’s degree.
- 36% of workers with a bachelor’s degree earned more in lifetime earnings than half of workers with a master’s degree.
- 23% of workers with a bachelor’s degree earn more in lifetime earnings than half of workers with a doctoral degree and 20% earn more in lifetime earnings than half of workers with a professional degree.
- This variation in earnings can be attributed, in part, to differences in field of study and occupation.
- Workers with a bachelor’s, master’s, and doctorate degree in architecture and engineering are the highest earning field of study while workers with a bachelor’s degree in education are the lowest earning field of study.
- Workers in computer and mathematical occupations with an associate’s degree have median lifetime earnings that is the same as the median lifetime earnings for all bachelor’s degree holders.
- Variation in earnings can also be attributed to pay disparities by gender, race, and ethnicity.
- Women with a high school diploma earn $1.3 million compared to $1.8 million for men. Women with an associate’s degree earn $1.8 million compared to $2.3 million for men. Women with a bachelor’s degree earn $2.4 million compared to $3.3 million for men. Women with a master’s degree earn $2.8 million compared to $3.9 million for men.
- Black workers with a high school diploma, associate’s degree,or bachelor’s degree earn 18%, 19%, and 21% respectively less than the median for White workers, the highest earning group at those levels. At the master’s degree level, Black workers earn 33% less than the median for Asian workers, the highest earning group at that level.
- Latino workers with a high school diploma, associate’s degree, bachelor’s degree or master’s degree earn 18%, 10%, 21%, and 25% respectively less than the median for White workers, the highest earning group at those levels. At the master’s degree level, Latino workers earn 25% less than the median for Asian workers, the highest earning group at that level.
- Native American/Alaskan Native workers with a high school diploma, associate’s degree, or bachelor’s degree earn 18%, 19%, and 24% respectively less than the median for White workers, the highest earning group at those levels. At the master’s degree level, they earn 38% less than Asian workers, the highest earning group at that level.
- Native Hawaiian/Pacific Islander workers with a high school diploma, associate’s degree, or bachelor’s degree, earn 12%, 10%, and 14% respectively less than the median for White workers, the highest earning group at those levels.
