How important is earning a Bachelor’s Degree

Don’t Sell Yourself Short, or the Value of a Bachelor’s Degree

By Felicia Bechtoldt

Via Oregon Workforce and Economic Information

According to data from the Pew Research Center, nearly every American feels that college is very important. Almost all parents (94%) expect their children to attend college, roughly three quarters (73%) of adults feel that college is “…essential to get ahead in life,” and Americans across the board believe they would have a larger salary with a college degree or a smaller salary without one. Folks are divided, however, on the “mission” of college. Close to 40 percent of Americans feel the main goal of a college education is personal growth while nearly half (47%) feel the main goal is preparation for the labor force. Some people might argue that both missions are essentially the same. Regardless of the purpose of college, from a labor market perspective the value of a bachelor’s degree is revealed in the data.

In 2014, the Hamilton Project used data from the American Community Survey to calculate expected annual and career earnings for 80 college majors. Their interactive graphs allow comparison between majors as well as associate’s degree; some college, no degree; high school diploma; and no diploma. Career earnings were $1.39 million (in 2014 dollars) for bachelor’s degree holders in the 50th percentile, $0.74 million for high school graduates, and $0.55 million for non-graduates.

In 2015, according to the American Community Survey, median annual earnings in the U.S. for workers with less than a high school education were $20,361 and for workers with a high school education they were $28,043. At the same time, median annual earnings for workers with a bachelor’s degree were $50,595. In Oregon in 2015, median annual earnings for workers with less than a high school education were $20,237, and for high school they were $26,514. Workers with a bachelor’s degree had a median annual earnings of $43,452.

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