On the key takeaways:
The first takeaway is that there is an incredible amount of variation in how well different colleges prepare you for
all kinds of things. When we hear policymakers talk about the need for more people to go to college and that
everybody, as President Obama says, needs at least a year of some sort of college, the variation is so astonishing
that talking about college in general doesn’t really make very much sense. There are maybe 10% of colleges in
the U.S. where going there actually hurts your rate of return. If you look at what you have to pay to go and what
you’re likely to learn from that afterwards in terms of your market value, the best thing you could do is drop out —
you’re really not gaining anything at all from those schools.
And there are others that have a terrific, even immediate return. And still there are others where we think the
long-term value of the education is way better than the first year job you ’re going to get out of this. So I think the
big return is that there is a huge variance. The information is really poor about which schools are good ones or
maybe even how to think about the problem. And so it does suggest [that there is] a real opportunity for
information to make a difference, and a little more careful thinking to make a difference as well.
On the key takeaways:The first takeaway is that there is an incredible amount of variation in how well different colleges prepare you forall kinds of things. When we hear policymakers talk about the need for more people to go to college and thateverybody, as President Obama says, needs at least a year of some sort of college, the variation is so astonishingthat talking about college in general doesn’t really make very much sense. There are maybe 10% of colleges inthe U.S. where going there actually hurts your rate of return. If you look at what you have to pay to go and whatyou’re likely to learn from that afterwards in terms of your market value, the best thing you could do is drop out —you’re really not gaining anything at all from those schools.And there are others that have a terrific, even immediate return. And still there are others where we think thelong-term value of the education is way better than the first year job you ’re going to get out of this. So I think thebig return is that there is a huge variance. The information is really poor about which schools are good ones ormaybe even how to think about the problem. And so it does suggest [that there is] a real opportunity forinformation to make a difference, and a little more careful thinking to make a difference as well.
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