The Investment in College Education: Is it Worth it?

Kryzsko Commons Ballroom, Winona, Minnesota

Hypotheses: This study tested two hypotheses: that an educational degree (independent variable) is positively correlated to wages (dependent variable), making college a good financial investment; and that education (Independent) contributes to differential income (dependent) across ethno-racial groups in the US; such that the income gap across these groups is driven not only by race but above all by education as the causal variable of economic disparity. Methods: I used US Census data (2010 to 2020) to test these hypotheses. Data are analyzed by means of univariate and multivariate analyses to determine the benefit of education in general and the extent to which education contributes to ethno-racial disparities related to income. Results: The first hypothesis seems correct according to univariate analysis of US Census data: The higher the educational degree, the higher the median wage income. The data shows a continuous climb in wages that is proportional to education degree level. For example, the most significant jump in wage from "less than high school education" level to "graduate or professional degree" involves a 77% difference in media of earnings. Analyses for the second hypothesis are still being conducted. Discussion: Investment in college is money well spent. As the median wage shows in the census data, the investment pays for itself. Colleges can use these types of analyses as part of their recruitment efforts; and students considering college should be aware of these data as well. Multivariate analyses pertaining to education and median income among ethno-racial groups are still being conducted, but analysis of the first hypothesis suggests that access to education may close income gaps among ethnoracial groups.