Friday, August 12, 2011

Recession Widened Education Gap

Recession Widened Education Gap

The Wall Street Journal adds to the college cost/benefit conversation: Recession Widened Education Gap in Job Market - Real Time Economics:

The job gap between more- and less-educated workers has widened steadily over the past 40 years as technical change and off-shoring placed huge competitive pressures on industries like manufacturing that traditionally employed workers that lacked a college education. But the recession intensified the process, says economist Adam Looney, a senior fellow at the Brookings Institute.

In the current job market, it can sometimes be difficult to convince students that what they’re doing is worthwhile, so Ms. Williams shows them statistics on how much better off people tend to be for getting a degree. Not only do workers with associate degrees have lower unemployment rates than workers who didn’t go beyond high school, Labor Department statistics show their weekly earnings were 23% higher in 2010."

The High School Diploma is not sufficient as global competition from educated third-world countries continues to expand. More studies are showing that an Associates Degree, is valuable, and SmartMoney recently published an article about the Payback Score comparing tuition and alumni salaries.

Cost-benefit analysis comes to higher education: See our 50% solution for Austin area students.


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