Is a four-year college degree worth it? Generally yes, but the results vary quite a bit across majors — and can even vary widely within majors.
That’s the takeaway from new research by Brad Hershbein and Melissa Kearney at The Hamilton Project.
Topping the list are the engineering fields, to no one’s surprise. Some of the least-earning majors are related to education, theater and art. Over a lifetime, the median expected earnings for a drama or theater arts major is lower than that of someone with a two-year associate’s degree.
Showing 191 posts tagged economics
When it comes to building wealth, whites have a vast advantage over their black and Hispanic peers. Writing at Demos, Matt Bruenig dug into the Federal Reserve’s latest Survey on Consumer Finances and found a huge wealth gap by race and ethnicity.
In fact, whites are so advantaged that the median wealth among white families headed by someone with less than a high school diploma ($51,300) is larger than that for black families headed by someone with a college degree ($25,900) and Hispanic families with a college degree ($41,000).
White non-Hispanics also fared better than their minority counterparts between 2010 and 2013. According to the Fed’s 2013 survey, the median net worth for white non-Hispanic families held steady, growing by only 2 percent, while the median net worth for non-white or hispanic families fell by 17 percent.
Financial literacy isn’t just teaching kids about money, according to Nan Morrison, president and chief executive officer at the Council for Economic Education. Children need to learn how to make smart decisions in addition to understanding money. SmartBrief talked with Morrison about her organization’s plans and resources for shaping the way kids learn.
image via flickr:CC | West Virginia Blue
In April 1995, a poll organized by NBC News and the Wall Street Journal revealed that 60 percent of Americans believed the biggest cause of poverty was “people not doing enough.” Only 30 percent blamed circumstances beyond one’s control, while the rest thought it was either a combination of both or weren’t sure.
Today, however, the same survey shows a nation divided nearly in half: 44 percent ascribe a life of financial struggle to laziness; 46 percent point to external factors.
Life isn’t so simple, though. Splitting the source of indigence into either one of two camps—poor because not enough effort; poor because not enough opportunity—may help facilitate conversation on the issue, but it’s also somewhat hurtful. This framing tends to turn the destitute into caricatures—either sinners who deserve their damnation or saints denied their salvation. Whatever they are, they’re no longer complicated creatures capable of contradiction. They’re no longer human.
Electronics almost universally become cheaper over time. But with essentially a monopoly on graphing calculator usage in classrooms, Texas Instruments can charge a premium. Texas Instruments accounted for 93 percent of the U.S. graphing calculator sales from July 2013-June 2014. Casio took the other 7 percent, according to NPD data. During that period 1.6 million graphing calculators were sold, a decrease from sales of 1.67 million during July 2011-June 2012.
This report focuses on the government’s private debt collector program, first describing how the current system works and what it costs. Next, the report details the incentive compensation system and how this system leads to abuses by private collection agencies. It then compares the Department of Education’s evaluation of its private collection agencies with complaints to the Federal Trade Commission and the Better Business Bureau. Finally, the report explains how the structure of Federal Student Aid (FSA) enables widespread violations of consumer protection laws and prevents borrowers from accessing their rights. The report concludes with recommendations for reform.
Earlier this year, we released a report aimed at injecting some much-needed evidence into what has become an often-hysterical public debate about student loan debt. Our report, “Is a Student Loan Crisis on the Horizon?” used data from the Survey of Consumer Finances (SCF) administered by the Federal Reserve Board to track how the education debt levels and incomes of young households evolved between 1989 and 2010. The data showed large increases in average debt levels over time, but also revealed some surprising findings.
- First, we found that roughly one-quarter of the increase in student debt between 1989 and 2010 can be directly attributed to increases in educational attainment, especially at the graduate level.
- Second, the increases in the average lifetime incomes of college-educated workers appear to have more than kept pace with increases in debt loads between 1992 and 2010. Specifically, the increase in earnings received over the course of 2.4 years would pay for the increase in debt incurred.
- Third, the monthly payment burden faced by student loan borrowers stayed about the same or even lessened between 1992 and 2010.
The average cost of raising a child from birth through age 18 is about $250,000 (excluding the cost of birth, college, and lost wages in between) or $13,900 per year. That Department of Agriculture estimate includes an extra bedroom and some transportation cost which, for some families, may not be a marginal cost. But it is still breathtakingly high–about a quarter of annual median income of $54,000.
While more than 90% of parents take advantage of free public education, they and other citizens pay for it through income and property tax (and, for college, lots of student loan debt). The grand total of $32,600 to raise a kid raises questions about economic sustainability. The disproportionality that falls on low income families raises questions about equity.
This August, Americans will spend an estimated on back-to-school shopping, according to the U.S. Department of Commerce. A lot of that spending is driven by the lists that schools and teachers give out, detailing what students need to bring on that first day.
To get a handle on what’s on those lists and in those backpacks — and how much it costs to fill them — we pulled a sample of schools around the country, one from each of the U.S. Census Bureau’s nine geographic regions. Then, we examined each school’s lists for grades one, three and five.
For those who choose teaching as a career, it isn’t typically for the high paycheck. But, there are some things that can have a positive or negative influence on a teacher’s pay. And some of them may surprise you!
College tuition and student debt levels have been increasing at a fast pace for at least two decades. These well-documented trends, coupled with an economy weakened by a major recession, have raised serious questions about whether the market for student debt is headed for a crisis, with many borrowers unable to repay their loans and taxpayers being forced to foot the bill.
There’s a simple reason young adults are living at home in higher numbers: For many, moving out means living in poverty.
The numbers are jarring. According to the Pew Research Center, a whopping 56% of 18-24 year olds lived at home in 2012, the highest rate since the 1970s. Today’s young adults are taking longer to reach life milestones like taking out a mortgage or getting married. The New Republic has dubbed this trend the Great Delay.
A new report says many schools are struggling with funding.
Big increases leave librarians at liberal-arts institutions feeling ambushed.
The rise in U.S. college tuition is unsustainable. That’s the argument of a new television documentary, “Ivory Tower,” which tackles growing worries and critique over college costs and student debt. Jeffrey Brown talks to filmmaker Andrew Rossi about the origins of rising costs and financial competition among institutions, plus ideas about how to turn around the trend.