Is a college degree worth all the money and hard work? Does your graduate degree enable you to earn more money than a non-graduate? Although the answer to these questions might not so straight-forward, but research shows that going to college pays. Let’s see how….
College Degree Is Worth It
A new study from the Federal Reserve Bank of New York, conducted by researchers Richard Deitz and Jaison R. Abel, revealed that pursuing a degree can actually help you earn more throughout your lifetime than those individuals who have avoided a college degree. The study found that both bachelor’s degrees and associate’s degrees offer an annual return on investment of almost 15 per cent.
Richard Deitz and Jaison Abel discovered that on an average, a bachelor’s degree graduate, aged 22 to 64, earns around $1.2 million more than workers with only a high school diploma. If you have earned an associate’s degree then you will earn almost $325,000 more than high school degree holders. Another study conducted by the Pew Research Centre found that college graduates, between the ages 25 and 32 and employed in full time jobs, tend to earn around $17,500 more yearly than employees who have pursued only high school diplomas.
Graduates Earn More
According to Government computations, graduate and postgraduate degree holders experience “significantly better employment outcomes” than those who have not earned a graduate degree in the UK. It was seen that employees who have successfully earned college degrees tend to earn about £9,000 more annually than non-graduates, taking into account the average salary for graduates at £31,000. Furthermore, employees who have studied for postgraduate degrees end up earning an additional £9,000 on average, which makes their average earnings around £40,000 per year.
The Department for Business, Innovation and Skills prepared the Graduate Labour Market report which reveals that individuals who have attended college and earned a degree have higher probabilities to land a lucrative job and get employed in highly skilled designations. The study discovered that only 20 per cent of non-graduate workers are employed in highly skilled sectors. The Graduate Labour Market report evaluated the Graduate Labour Market report during the period July to September 2014 for employees between the age 16 and 64.
Better Opportunities For Graduates
This was revealed right after the Government declared that postgraduates will be able to take student loans for covering the cost of their education. This postgraduate loan scheme will be similar to the model of undergraduate student loans, according to the Autumn statement from the Chancellor. Moreover, currently, almost 87 per cent graduate and postgraduate degree holders are employed as compared to only 70 per cent individuals with any degree.
Greg Clark, Universities, Science and Cities Minister, said “Going to university is a great investment. Undergraduate and postgraduate study opens doors to exciting and rewarding careers. There are clear benefits to graduates and to the country from higher earnings and high levels of employment.”