Don't Buy The Hype, College Education Is Not An Investment By George Leef
Many studies claim that college is “worth it” and “still a good investment.” The technique of studies is to compare average earnings of workers who have college degrees with average earnings of workers who don’t and conclude that because the first group does significantly better, having gone to college was a good investment.
That analysis is misleading. The flaw is that it draws a conclusion about future conditions (earnings that people who go college now can expect) from data based on earnings for college graduates going decades back. The future won’t be similar to the past for many college graduates and telling young people that college will be a good investment is careless and irresponsible.
In truth, going to college isn’t an investment at all.
No one receives good payment merely for finishing college. Employers do not reward workers just for having passed enough classes to earn a degree. They reward workers for their productivity. Going to college might increase a person’s productivity, but it’s neither necessary nor sufficient for that.
Let’s consider three students to make that point.
Student A was diligent in high school and enrolls in college with an excellent academic foundation. He concentrates on his work and substantially raises his level of knowledge and skill. After graduating, he finds a good job in his major field and continues to advance. For him, college was worthwhile because it helped augment his human capital.
Student B got through high school with a minimum of effort. He has little interest in academic pursuits, but still he enrolls in a college because he’s heard that getting a degree will boost his earnings. Thanks to grade inflation and the weak curriculum, he finally gets a degree in some undemanding field. After graduating, the best job he can find is working in a computer retail shop, selling computer peripherals, such as mice, keyboards, and thumb drrives. He has nothing show for his college years but a piece of paper and lots of debt.
Student C was a good student in high school, but instead of enrolling in college, she earns several badges and certifications in things she’s interested in, such as computer programming and Portuguese. She assembles an online portfolio with those and other material showing what she can do. Shortly after her 20th birthday, she’s offered a job by a Brazilian importer that needed a capable American representative.
To conclude, having that degree was a competitive advantage in landing a job, but success always depended on personal performance rather than educational pedigree. College itself isn’t an investment, just one way of increasing your value