Trends in Higher Education Series Education Pays 2019 THE BENEFITS OF HIGHER EDUCATION FOR INDIVIDUALS AND SOCIETY

Jennifer Ma, Matea Pender, and Meredith Welch ABOUT THE AUTHORS

Jennifer Ma Senior Policy Research Scientist, College Board

Matea Pender Policy Research Scientist, College Board

Meredith Welch Doctoral Student, Policy Analysis & Management, Cornell University ACKNOWLEDGMENTS

Anthony LaRosa and Edward Lu provided critical support for this publication. We also benefited from comments from Dean Bentley, Jessica Howell, Michael Hurwitz, and Melanie Storey. Sandy Alexander provided expert graphic design work. The publication would not have been possible without the cooperation and support of many individuals at College Board, including Connie Betterton, Auditi Chakravarty, Jennifer Hwang, Jennifer Ip, Karen Lanning, George Lalis, Robert Majoros, Jose Rios, and Jennifer San Miguel.

The tables supporting all of the graphs in this report, a PDF version of the report, and a PowerPoint file containing individual slides for all of the graphs are available on our website research.collegeboard.org/research.

Please feel free to cite or reproduce the data in this report for noncommercial purposes with proper attribution.

For inquiries or requesting hard copies, please contact: [email protected].

© 2019 College Board. College Board, Advanced Placement Program, SAT, and the acorn logo are registered trademarks of the College Board. All other products and services may be trademarks of their respective owners. Trends in Higher Education Series Education Pays 2019 THE BENEFITS OF HIGHER EDUCATION FOR INDIVIDUALS AND SOCIETY

Jennifer Ma, Matea Pender, and Meredith Welch With an Introduction by Jessica Howell Highlights ƒ As in previous editions, Education Pays 2019: The Benefits of Higher In 1998, the percentage of male adults age 25 to 29 who had Education for Individuals and Society documents differences in the completed at least a bachelor’s degree was 13%, 10%, and 31% earnings and employment patterns of U.S. adults with different levels for blacks, Hispanics, and whites, respectively. By 2018, these of education. It also compares health-related behaviors, reliance on percentages had increased to 20%, 17%, and 39%. (Figure 1.6) ƒ public assistance programs, civic participation, and indicators of the Within each sector, students with higher family incomes were well-being of the next generation. more likely to complete a degree than their lower-income peers with similar high school GPAs. (Figure 1.4) In addition to reporting median earnings by education level, this year’s report presents data on variation in earnings by different Participation in postsecondary education differs characteristics such as gender, race/ethnicity, occupation, college considerably across states. major, and sector. Education Pays 2019 also examines the persistent ƒ disparities across different socioeconomic groups in college The percentage of 18- to 24-year-olds enrolled in college in participation and completion. 2017 ranged from 29% in Alaska and 31% in Nevada to 56% in the District of Columbia and 57% in Rhode Island. (Figure 1.7) We present correlations between various outcomes and educational ƒ In 2017, the percentage of adults age 25 and older with at least a attainment. It is worth noting that not all of the observed differences bachelor’s degree ranged from 20% in West Virginia and 22% in in outcomes are attributable to education. However, reliable Mississippi to 44% in Massachusetts and 57% in the District of statistical analyses support the significant role of postsecondary Columbia. (Figure 1.7) education in generating the benefits reported and we cite causal evidence when possible. THE BENEFITS OF HIGHER EDUCATION AND VARIATION IN OUTCOMES PARTICIPATION AND SUCCESS IN HIGHER EDUCATION Individuals with higher levels of education earn more, pay more taxes, and are more likely than others to be employed. Although college enrollment rates continue to rise, gaps ƒ in enrollment rates persist across demographic groups. In 2018, the median earnings of bachelor’s degree recipients ƒ with no advanced degree working full time were $24,900 In 1998, 59% of black and 55% of Hispanic recent high school higher than those of high school graduates. Bachelor’s degree graduates enrolled in college within one year of high school recipients paid an estimated $7,100 more in taxes and took graduation, compared with 68% of white students. In 2018, home $17,800 more in after-tax income than high school enrollment rates were 60%, 66%, and 70% for black, Hispanic, graduates. (Figure 2.1) and white students, respectively. (Figure 1.1A) ƒ ƒ The typical 4-year college graduate who enrolls at age 18 and Since 1989, the enrollment rate for recent female high school graduates in 4 years can expect to earn enough relative to a high graduates has consistently exceeded that of their male school graduate by age 33 to compensate for being out of the counterparts. Annual enrollment rates fluctuate, but the average labor force for 4 years and for borrowing the full tuition and fees gender gap increased from 4 percentage points between 1988 and books and supplies without any grant aid. (Figure 2.2A) and 1998 to 5 percentage points the following decade and ƒ 7 percentage points between 2008 and 2018. (Figure 1.2A) In 2018, among full-time year-round workers between the ages ƒ of 25 and 34, median earnings among women with at least a Among students with similar high school math test scores, bachelor’s degree were $52,500, compared with $29,800 for college enrollment rates are higher for those from higher those with a high school diploma. Median earnings among men socioeconomic status (SES) quintiles than for those from with at least a bachelor’s degree were $63,300, compared with lower SES quintiles. (Figure 1.3A) $39,800 for those with a high school diploma. (Figure 2.6) ƒ While overall educational attainment is increasing, college In 2018, among adults between the ages of 25 and 64, 69% of completion rates and attainment patterns differ considerably high school graduates, 73% of those with some college but no across demographic groups. degree, 78% of those with associate degrees, and 83% of those ƒ with 4-year college degree were employed. (Figure 2.11) The percentage of young adults in the U.S. between the ages ƒ The unemployment rate for individuals age 25 and older with at of 25 and 34 with at least a bachelor’s degree grew from 11% in least a bachelor’s degree has consistently been about half of 1960 to 24% in 1980 and 1990. In 2018, 39% of adults in this age the unemployment rate for high school graduates. (Figure 2.12A) group had earned at least a bachelor’s degree. (Figure 1.5A) ƒ ƒ In 2018, the unemployment rate for 25- to 34-year-olds with at In 1998, the percentage of female adults age 25 to 29 who had least a bachelor’s degree was 2.2%, compared with 5.7% among completed at least a bachelor’s degree was 17%, 11%, and 34% high school graduates. (Figure 2.12B) for blacks, Hispanics, and whites, respectively. By 2018, these percentages had increased to 25%, 22%, and 47%. (Figure 1.6)

4 ƒ Median earnings increase with level of education, but there Children from lower-income backgrounds were less likely to attend is considerable variation in earnings at each level of more selective institutions. Children whose parents were in the educational attainment. top 1% of the income distribution were nearly 50 times more likely ƒ to attend the most selective institutions as those whose parents The percentage of full-time year-round workers age 35 to 44 were in the bottom 20%. (Figure 2.15B) earning $100,000 or more in 2018 ranged from 2% of those ƒ without a high school diploma and 5% of high school graduates In 2018, 4% of bachelor’s degree recipients age 25 and older to 28% of those whose highest attainment was a bachelor’s lived in poverty, compared with 13% of high school graduates. degree and 43% of advanced degree holders. (Figure 2.3) (Figure 2.16A) ƒ ƒ Between 2016 and 2018, median earnings of individuals age 25 to In 2018, 7% of individuals age 25 and older with associate 34 working full time year-round with a bachelor’s degree ranged degrees and 9% of those with some college but no degree lived from $42,100 among black females and $43,900 among Hispanic in households that benefited from the Supplemental Nutrition females to $72,300 among Asian males. The earnings premium Assistance Program (SNAP), compared with 12% of those with for a bachelor’s degree relative to a high school diploma was the only a high school diploma. (Figure 2.17) highest among Asian males and females. (Figure 2.4) Having a college degree is associated with a healthier lifestyle, ƒ In 2018, median earnings of female 4-year college graduates potentially reducing health care costs. Adults with higher levels working full time year-round were $56,700. However, 25% of of education are more active citizens than others and are more them earned less than $40,500, and another 25% earned more involved in their children’s activities. than $81,600. (Figure 2.5) ƒ ƒ In 2018, 69% of 25- to 34-year-olds with at least a bachelor’s In 2018, median earnings of male 4-year college graduates degree and 47% of high school graduates reported exercising working full time year-round were $75,200. However, 25% of vigorously at least once a week. (Figure 2.19A) them earned less than $50,400, and 25% earned more than ƒ $110,000. (Figure 2.5) Children of parents with higher levels of educational attainment ƒ are more likely than other children to engage in a variety of Between 2013 and 2017, among occupations that employ large educational activities with their family members. (Figures 2.20B numbers of both high school graduates and college graduates, and 2.21A) the median earnings of those with only a high school diploma ƒ ranged from $31,400 (in 2017 dollars) for retail salespersons Among adults age 25 and older, 19% of those with a high school to $60,100 for general and operations managers. The median diploma volunteered in 2017, compared with 42% of those with earnings of those with at least a bachelor’s degree ranged from a bachelor’s degree and 52% of those with an advanced degree. $41,800 (in 2017 dollars) for administrative assistants to $89,500 (Figure 2.22A) for first-line supervisors of nonretail workers. (Figure 2.8) ƒ Voting rates are higher among individuals with higher levels ƒ In 2016 and 2017, median earnings for early career bachelor’s of education. In the 2016 presidential election, 73% of 25- to degree recipients ranged from $32,100 a year for early childhood 44-year-old U.S. citizens with at least a bachelor’s degree voted, education majors to $62,000 for computer science majors. For compared with 41% of high school graduates in the same age those in mid-career, median earnings ranged from $41,000 to group. (Figure 2.23A) $95,000. (Figure 2.9) ƒ Institutional median earnings vary by sector. From 2014 to 2015, the typical 4-year college’s median earnings of 2003-04 and 2004-05 federal student aid recipients ranged from $34,600 at for-profit institutions to $42,800 at private nonprofit institutions and $42,950 at public institutions. (Figure 2.10A)

College education increases the chance that adults will move up the socioeconomic ladder and reduces the chance that adults will rely on public assistance. ƒ Among those who attended the most selective colleges, 68% of children from the lowest parent income quintile were in the top two income quintiles as adults, compared with 72% of children from the middle-income quintile and 76% from the highest income quintile. (Figure 2.15A)

5 Contents

4 Highlights 8 Introduction

Part 1: The Distribution of Benefits: Who Participates and Succeeds in Higher Education

College Enrollment

10 College Enrollment by Race/ FIGURE 1.1A College Enrollment Rates of Recent High School Graduates by Race/Ethnicity over Time

Ethnicity FIGURE 1.1B College Enrollment Rates of 18- to 24-Year-Olds by Race/Ethnicity over Time

11 College Enrollment by Gender FIGURE 1.2A College Enrollment Rates of Recent High School Graduates by Gender over Time FIGURE 1.2B College Enrollment Rates of 18- to 24-Year-Olds by Gender over Time

12 College Enrollment by Math FIGURE 1.3A College Enrollment by Math Quintile and Parents’ Socioeconomic Status

Score and Socioeconomic

Status FIGURE 1.3B Sector of First Postsecondary Institution by Math Quintile and Parents’ Socioeconomic Status

College Completion and Educational Attainment

13 College Completion Rates FIGURE 1.4 Six-Year Completion Rates by Sector, High School GPA, and Family Income

14 Educational Attainment FIGURE 1.5A Educational Attainment of Individuals Age 25 to 34 over Time FIGURE 1.5B Educational Attainment of Individuals by Age Group, 2018

15 Educational Attainment by FIGURE 1.6 Percentage of 25- to 29-Year-Olds Who Have Completed High School or a Bachelor’s Degree,

Race/Ethnicity and Gender by Race/Ethnicity and Gender over Time

16 College Enrollment and FIGURE 1.7 College Enrollment Rates of 18- to 24-Year-Olds and Educational Attainment by State

Attainment by State

Part 2: Individual and Societal Benefits of Higher Education

Earnings

17 Education, Earnings, and Tax FIGURE 2.1 Median Earnings and Tax Payments of Full-Time Year-Round Workers Age 25 and Older,

Payments by Education Level, 2018

18 Earnings Premium Relative to FIGURE 2.2A Estimated Cumulative Full-Time Earnings Net of Loan Repayment for Tuition and Fees and

Price of Education Books and Supplies, by Education Level

19 Earnings Premium Relative to FIGURE 2.2B Age at Which Cumulative Earnings of College Graduates Exceed Those of High

Price of Education: Alternative School Graduates

Scenarios

20 Variation in Earnings Within FIGURE 2.3 Earnings Distribution of Full-Time Year-Round Workers Age 35 to 44, by Education Level, 2018

Levels of Education

21 Earnings by Race/Ethnicity, FIGURE 2.4 Median Earnings of Full-Time Year-Round Workers Age 25 to 34, by Race/Ethnicity, Gender, and

Gender and Education Level Education Level, 2016–2018

22 Earnings by Gender and FIGURE 2.5 Median, 25th Percentile, and 75th Percentile Earnings of Full-Time Year-Round Workers Age 25

Education Level and Older, by Gender and Education Level, 2018

23 Earnings over Time by Gender FIGURE 2.6 Median Earnings of Full-Time Year-Round Workers Age 25 to 34 over Time, by Gender and

and Education Level Education Level

24 Earnings Paths FIGURE 2.7 Median Earnings of Full-Time Year-Round Workers, by Age and Education Level, 2013–2017

25 Earnings by Occupation and FIGURE 2.8 Median Earnings of Full-Time Workers Age 25 and Older with a High School Diploma and Those

Education Level with at Least a Bachelor’s Degree, by Occupation, 2013–2017 Median Earnings of Early Career and Mid-Career College Graduates Working Full Time, 26 Earnings by College Major FIGURE 2.9 by College Major, 2016−2017

27 Variation in Earnings by FIGURE 2.10A Distribution of 2014 and 2015 Institutional Median Earnings of Federal Student Aid Recipients

Institutional Sector in 2003-04 and 2004-05, by Sector FIGURE 2.10B Average 2014 and 2015 Earnings of Dependent Federal Student Aid Recipients in 2003-04 and 2004-05, by Sector and Graduation Rate

6 Contents—Continued

Other Economic Benefits

28 Employment FIGURE 2.11 Civilian Population Age 25 to 64: Percentage Employed, Unemployed, and Not in Labor Force, 2008, 2013, and 2018

29 Unemployment FIGURE 2.12A Unemployment Rates of Individuals Age 25 and Older, by Education Level, 1998 to 2018

30 Unemployment FIGURE 2.12B Unemployment Rates of Individuals Age 25 and Older, by Age and Education Level, 2018 FIGURE 2.12C Unemployment Rates of Individuals Age 25 and Older, by Race/Ethnicity and Education Level, 2018

31 Retirement Plans FIGURE 2.13 Employer-Provided Retirement Plan Coverage Among Full-Time Year-Round Workers Age 25 and Older, by Sector and Education Level, 2018 32 Health Insurance FIGURE 2.14A Employer-Provided Health Insurance Coverage Among Full-Time Year-Round Workers Age 25 and Older, by Education Level, 1998, 2008, and 2018 FIGURE 2.14B Employer-Provided Health Insurance Coverage Among Part-Time Workers Age 25 and Older, by Education Level, 1998, 2008, and 2018

33 Social Mobility FIGURE 2.15A Percentage of Children in Top Income Quintiles as Adults, by Parents’ Income and College Tier: Children Born in 1980 to 1982 FIGURE 2.15B Distribution of College Enrollment by Parents’ Income Quintile, Children Born in 1980 to 1982

34 Poverty FIGURE 2.16A Percentage of Individuals Age 25 and Older Living in Households in Poverty, by Household Type and Education Level, 2018 FIGURE 2.16B Living Arrangements of Children Under 18 Years of Age, by Poverty Status and Highest Education of Either Parent, 2018 35 Public Assistance Programs FIGURE 2.17 Percentage of Individuals Age 25 and Older Living in Households That Participated in Various Public Assistance Programs, by Education Level, 2018

Health Benefits

36 Smoking FIGURE 2.18A Smoking Rates Among Individuals Age 25 and Older over Time, by Education Level FIGURE 2.18B Smoking Rates Among Individuals Age 25 and Older, by Gender and Education Level, 2017

37 Exercise FIGURE 2.19A Exercise Rates Among Individuals Age 25 and Older, by Age and Education Level, 2018 FIGURE 2.19B Percentage Distribution of Leisure-Time Aerobic Activity Levels Among Individuals Age 25 and Older, by Education Level, 2018

Other Individual and Societal Benefits 38 Parents and Children: FIGURE 2.20A Percentage of 3- to 5-Year-Olds Enrolled in Preschool Programs, by Parents’ Education Preschool-Age Children Level, 2017 FIGURE 2.20B Percentage of 3- to 5-Year-Olds Participating in Activities with a Family Member, by Parents’ Education Level, 2016 39 Parents and Children: FIGURE 2.21A Percentage of Kindergartners Through Fifth Graders Participating in Activities with a Family

School-Age Children Member in the Past Month, by Parents’ Education Level, 2016 FIGURE 2.21B Percentage of Elementary and Secondary School Children Whose Parents Were Involved in School Activities, by Parents’ Education Level, 2016 40 Civic Involvement FIGURE 2.22A Percentage of Individuals Age 25 and Older Who Volunteered, by Gender and Education Level, 2017 FIGURE 2.22B Percentage of Individuals Age 25 and Older Who Volunteered, by Age and Education Level, 2017 41 Voting FIGURE 2.23A Voting Rates Among U.S. Citizens, by Age and Education Level, 2016 and 2018 FIGURE 2.23B Voting Rates Among U.S. Citizens During Presidential Elections over Time, by Education Level

42 References

7 Introduction

Jessica Howell THE PAYOFF OF HIGHER EDUCATION Vice President, Research, College Board FOR INDIVIDUALS

Education Pays: The Benefits of Higher Education for Individuals Most college students report improved job prospects and financial and Society documents the substantial individual payoff from security as a primary reason for college attendance. The data are investments in higher education, the variation in outcomes clear: adults with postsecondary credentials are, in fact, more experienced by different individuals, and the benefits we all enjoy likely to be employed and to earn more than individuals who did from a more educated populace. Since 2004, College Board has not attend college. In 2018, 83% of adults with bachelor’s degrees been publishing updates to this report every three years. Education or higher were employed, compared with 69% of adults with a Pays rounds out the Trends in Higher Education series that includes high school diploma (Figure 2.11). In 2018, median earnings of Trends in Student Aid and Trends in College Pricing. These reports full-time workers with associate and bachelor’s degrees were provide a foundation for evaluating public policies to increase 24% and 61% higher, respectively, than that of their peers with educational opportunities. only a high school diploma. The earnings premium for workers This report combines publicly available government statistics and with postbaccalaureate credentials is even higher (Figure 2.1). academic research to paint a detailed and integrated picture of the Though not all the earnings premia cited above are attributable to benefits of higher education and the distribution of those benefits differences in educational attainment, a growing body of research across society. Many graphs in this report compare the experiences clearly identifies postsecondary education as causally impacting of people with different education levels and illustrate straightforward earnings (Zimmerman, 2014; Hoekstra, 2009). correlations between education and various outcomes. When The benefits of a college education extend beyond financial possible, we cite causal evidence of the direct impact of higher gains. More educated citizens have greater access to health care education on both financial outcomes and behavior patterns. and retirement plans. They are more likely to engage in healthy COLLEGE ACCESS AND SUCCESS behaviors, be active and engaged citizens, and be in a position to provide better opportunities for their children.

Education Pays provides information about college enrollment Because the price of college continues to rise over time, even patterns, completion rates, and educational attainment levels substantial benefits from investing in education must be compared across demographic groups in the United States. The nation has with costs in order to assess whether college is a worthwhile made progress increasing the share of young adults who invest in investment. Figures 2.2A and 2.2B indicate that a 4-year college postsecondary education. The percentage of 18- to 24-year-olds graduate who enrolls at age 18 with median earnings can expect who enroll in college increased from 25% in 1978 to 41% in 2018 to earn enough by age 33 to compensate for being out of the labor (Figure 1.1B). The growth in college enrollment over time translates force for four years and for borrowing the full tuition and fees and into 67% of adults age 25 to 34 in the U.S. having at least some books and supplies without any grant aid. An associate degree is college experience in 2018, an increase from 57% in 2000 and from both faster and less expensive to acquire but yields smaller earnings, 46% in 1980 (Figure 1.5A). on average, than a bachelor’s degree, so it is unsurprising that the Although the share of all young adults age 25 to 29 who had break-even age of an associate degree is similar (age 31). Over the a bachelor’s degree or higher rose to 36% in 2018, this share course of a lifetime, and accounting for the costs of obtaining a ranged from 19% for Hispanics and 23% for blacks to 43% for degree, individuals with a bachelor’s degree earn about $400,000 whites and 66% for Asians (Page 15). Gaps in college enrollment more than individuals with a high school degree. The financial and completion rates can be partially explained by differences in benefits of an associate degree are roughly half as large. academic preparation in K–12. Yet, even among students with similar The average payoff to college is considerable, but not all students academic achievement levels in high school, students from lower- reap the same financial rewards. Several analyses in this report socioeconomic-status families enroll and graduate at lower rates focus on the variation in the outcomes of higher education than those from higher-socioeconomic-status families (Figures across and within demographic groups, types of credentials, and 1.3A and 1.4). Moreover, there are stark differences by student institutional sectors. The distribution of earnings in Figure 2.3 tells socioeconomic status in types of postsecondary institutions a more nuanced story about the mid-career earnings of full-time students with similar academic preparation choose, which likely workers with the same level of education. While 28% of employed contributes to uneven college completion rates (Figure 1.3B). adults with a bachelor’s degree working full time earn more than

8 $100,000, 17% earn less than $40,000. This disparity in earnings The data in Education Pays provide a strong argument for increasing outcomes reflects, among other underlying factors, geographic access to and support for successful postsecondary pathways. differences in wages, variation in types of colleges attended, and Research suggests that increased public commitment to this priority differences in fields of study and occupations (Figures 2.8 through through public subsidies for higher education institutions is the most 2.10B). Although these nuances are important to our understanding promising approach to increasing degree completion and realizing of the circumstances under which educational investments pay off, greater private and public benefits (Deming & Walters, 2017; Avery, the overall patterns are clear—more education is associated with Howell, Pender, & Sacerdote, 2019). increased opportunities for the vast majority of students. IS COLLEGE WORTH IT? This report also reveals earnings differentials among individuals with similar levels of education by race and gender. Underrepresented A postsecondary education opens the door to many opportunities. minorities continue to earn less than their white and Asian As the price of college continues to rise, more students and families counterparts and females continue to earn less than their male are asking if college is worth it. Media headlines highlight stories counterparts (Figures 2.4 through 2.6). Though issues of equity exist of college students saddled with debt without gainful employment. in the workplace, postsecondary education remains a catalyst for Although these stories do exist, they are far from typical. As social mobility. Figure 2.15A shows that a college education can be illustrated in this report, college is a worthwhile investment that pays a powerful equalizer. When students attend similar postsecondary off over time for most students. Of course, students and families institutions, the percentage of students who end up in the top two face crucial choices—which institution, which field of study, and income quintiles as adults is nearly the same for students from the how to finance it all—that factor into their eventual answer to the lowest-income-quintile families as it is for those from top-income- question, “Was college worth it?” Additional data and transparency quintile families. Although Figure 2.15B illustrates that affluent about the costs and benefits of postsecondary education are students are still considerably more likely to attend selective colleges needed to inform these choices. than their less affluent peers, expanding access to selective Education Pays shows the variation in earnings by institutional colleges remains a promising avenue to economic mobility. sector based on the college-level earnings data from the THE PUBLIC BENEFITS OF HIGHER EDUCATION Department of Education’s College Scorecard (Figures 2.10A and 2.10B). In 2019, the Department of Education expanded upon the Society at large also gains from increases in postsecondary college-level earnings data it began releasing in 2015. It provided attainment. A more productive economy generates a higher standard program-level data for every college, including median debt data and of living. We can all enjoy the benefits of having a more well-educated median first-year earnings data. This is the first time such detailed populace. Increases in wages generate higher tax payments at the data about labor market outcomes of students from specific majors local, state, and federal levels. In 2018, four-year college graduates and colleges have been made available at the national level. The paid, on average, 82% more in taxes than high school graduates and, earnings data include information for associate and bachelor’s for those with a professional degree, average tax payments were degrees, certificate programs, and graduate degrees—a substantial more than three times as high as those of high school graduates. step toward transparency around the monetary benefits of specific Spending on social support programs such as unemployment postsecondary investments. Continued progress in providing data compensation, the Supplemental Nutrition Assistance Program on the benefits and costs of postsecondary investments at the (SNAP), and Medicaid is much lower for individuals with higher levels institution and program levels will give students, families, institutions, of education. Figure 2.17 shows that SNAP participation among and policymakers the information they need to quantitatively individuals with a high school diploma is four times as high as that evaluate which postsecondary opportunities best serve individual among those with a bachelor’s degree or higher. and public educational goals.

Education is associated with healthful behaviors and civic engagement. Over time, rates of smoking have dropped the most precipitously among college-educated adults (Figure 2.18A). Rates of reported exercise rise with educational attainment for individuals of all ages (Figure 2.19A). Adults with greater educational attainment are more likely to volunteer and to vote. In the 2016 presidential election, 73% of young adults age 25 to 44 with at least a bachelor’s degree voted, compared with 41% of their peers with a high school diploma (Figure 2.23A).

9 College Enrollment by Race/Ethnicity In 1998, 59% of black and 55% of Hispanic recent high school graduates enrolled in college within one year of high school graduation, compared with 68% of white students. In 2018, enrollment rates were 60%, 66%, and 70% for black, Hispanic, and white students, respectively.

FIGURE 1.1A ƒ Postsecondary Enrollment Rates of Recent High School Graduates Enrollment rates of young adults between the by Race/Ethnicity, 1978 to 2018 ages of 18 and 24 are lower than enrollment rates of all recent high school graduates. Recent High School Graduates ƒ In 1998, 29% of black and 21% of Hispanic young Black Hispanic White adults between the ages of 18 and 24 were enrolled 80% in college, compared with 40% of white young

70% adults. In 2018, enrollment rates were 37% for 68% black and Hispanic and 42% for white young adults. 66% 60% 59% 60% ALSO IMPORTANT: 50% 55% ƒ 48% College enrollment rates are higher for Asians than 47% for other racial/ethnic groups. In 2018, 83% of Asians 40% enrolled in college within a year of graduating from high school. (NCES, Digest of Education Statistics, Enrollment Rate Enrollment 2019, Table 302.20; calculations by the authors) ƒ 20% Differences in high school graduation rates account for some of the college enrollment gaps graphed in Figure 1.1B. In 2016-17, 89% of white, 78% of black, and 80% of Hispanic public high school students 0% graduated from high school in four years. (NCES, 1978 1983 1988 1993 1998 2003 2008 2013 2018 Digest of Education Statistics, 2018, Table 219.47)

FIGURE 1.1B Postsecondary Enrollment Rates of All 18- to 24-Year-Olds by Race/Ethnicity, 1978 to 2018

All 18- to 24-Year-Olds

Black Hispanic White

80%

60%

40% 42% 40% 37% 29% 37%

Enrollment Rate Enrollment 27% 21% 20% 21% 17%

0% 1978 1983 1988 1993 1998 2003 2008 2013 2018

NOTES: “Recent high school graduates” include those who graduated from high school in the SOURCES: National Center for Education Statistics (NCES), previous 12 months. “All 18- to 24-year-olds” also include those who have not completed high Digest of Education Statistics, 2019, Tables 302.20 and 302.60; school. “Postsecondary enrollment rates” are three-year moving averages and include both calculations by the authors. undergraduate and graduate students. Some 18- to 24-year-olds have completed college and are no longer enrolled. Because of small sample sizes for Hispanics and blacks, annual fluctuations in enrollment rates may not be significant.

10 EDUCATION PAYS 2019 Part 1: Distribution of Benefits College Enrollment by Gender In 1998, 62% of male and 70% of female recent high school graduates enrolled in college within one year of high school graduation. In 2018, enrollment rates were 65% and 72% for male and female students, respectively.

FIGURE 1.2A ƒ Postsecondary Enrollment Rates of Recent High School Graduates Since 1989, the college enrollment rate of recent by Gender, 1978 to 2018 female high school graduates has consistently exceeded that of recent male high school graduates. Recent High School Graduates ƒ In 2018, 38% of all male and 44% of all female young Male Female adults between the ages of 18 and 24 were enrolled 80% in college. The gender gap in enrollment for this 72% age group was 3 percentage points in 1998 and 70% 65% 6 percentage points in 2008. 62% 60% ALSO IMPORTANT: 50% ƒ In 1977, female students accounted for 49% of all 50% college students. By 2017, this percentage had grown 40% to 57%. (NCES, Digest of Education Statistics, 2018, Table 303.10) Enrollment Rate Enrollment

20%

0% 1978 1983 1988 1993 1998 2003 2008 2013 2018

FIGURE 1.2B Postsecondary Enrollment Rates of All 18- to 24-Year-Olds by Gender, 1978 to 2018

All 18- to 24-Year-Olds

Male Female

80%

60%

44%

40% 38% 38% 35% Enrollment Rate Enrollment 28%

20% 24%

0% 1978 1983 1988 1993 1998 2003 2008 2013 2018

NOTES: “Recent high school graduates” include those who graduated from high school in the SOURCES: NCES, Digest of Education Statistics, 2019, Tables previous 12 months. “All 18- to 24-year-olds” also include those who have not completed high 302.10 and 302.60; calculations by the authors. school. “Postsecondary enrollment rates” are three-year moving averages and include both undergraduate and graduate students. Some 18- to 24-year-olds have completed college and are no longer enrolled.

11 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. College Enrollment by Math Score and Socioeconomic Status Among students with similar high school math test scores, college enrollment rates are higher for those from higher socioeconomic status (SES) quintiles than for those from lower SES quintiles.

FIGURE 1.3A ƒ Postsecondary Enrollment Status in 2016 by Math Quintile and For the high school class of 2013, gaps in college Parents’ Socioeconomic Status: High School Class of 2013 enrollment rates between students from different SES backgrounds are larger for those with lower 100% 94% math scores. w 86% 86% 9% Among students in the lowest two math quintiles, 82% 46% of those from the lowest two SES quintiles 80% 16% 72% 19% had enrolled in college by 2016 (three years after 68% 18% high school graduation), and 65% of those from 65% 16% 63% the highest two SES quintiles had enrolled. Left 60% w 54% 19% College Among students in the highest two math 18% 17% Without a Credential quintiles, 82% of low-SES and 94% of high-SES 46% 18% students had enrolled in college by 2016. 85% Currently 40% Enrolled or ƒ 17% 71% 67% Attained a High-SES students are more likely to enroll in a 63% Credential 57% public or private nonprofit 4-year institution than 47% 46% 49% their lower-SES peers with similar math scores. 20% Percentage of High School Graduates Percentage 36% 28% ALSO IMPORTANT: ƒ 0% Figure 1.3B shows the sectors of first institutions All Lowest Middle Highest Lowest Middle Highest Lowest Middle Highest Two SES SES Two SES Two SES SES Two SES Two SES SES Two SES students attended. Some students begin in one Quintiles Quintile Quintiles Quintiles Quintile Quintiles Quintiles Quintile Quintiles sector before transferring to another type of (54%) (22%) (24%) (43%) (23%) (34%) (25%) (17%) (58%) institution. For example, about 30% of students who Lowest Two Math Middle Math Highest Two Math Quintiles (38%) Quintile (19%) Quintiles (44%) first enrolled in a public 2-year college in 2012 had transferred to a 4-year institution by 2018. (Shapiro et al., 2019, Table 4a) FIGURE 1.3B Sector of First Postsecondary Institution by Math Quintile and Parents’ Socioeconomic Status: High School Class of 2013

100%

19%

80% 41% 37% 39% 43%

57% For-Profit 62% 65% 60% 69% 67% Public 2-Year

54% Public 4-Year

40% Private 39% 44% 44% 38% Nonprofit

Percentage of Students Percentage 4-Year 28% 25% 20% 18% 16% 23% 26% 18% 17% 16% 16% NOTES: Math quintiles were based on students’ 11th-grade math 10% 11% 13% 9% 11% scores. Socioeconomic status was measured by a composite 0% score of parental education, occupations, and family income in All Lowest Middle Highest Lowest Middle Highest Lowest Middle Highest Two SES SES Two SES Two SES SES Two SES Two SES SES Two SES 2011 when students were in 11th grade. Components may not Quintiles Quintile Quintiles Quintiles Quintile Quintiles Quintiles Quintile Quintiles sum to totals because of rounding. Lowest Two Math Middle Math Highest Two Math SOURCES: NCES, High School Longitudinal Study of 2009; Quintiles Quintile Quintiles PowerStats calculations by the authors.

12 EDUCATION PAYS 2019 Part 1: Distribution of Benefits College Completion Rates Within each sector, students with higher family incomes were more likely to complete a degree than their lower-income peers with similar high school GPAs.

FIGURE 1.4 ƒ Six-Year Completion Rates by Sector, High School GPA, and Family Among public 4-year students in the highest high Income: 2011-12 Beginning Postsecondary Students school GPA (HSGPA) category, 63% of low-income students completed a degree within 6 years while Bachelor’s Degree Associate Degree 90% of high-income students did. Public 4-year 60% 5% 66% ƒ Among public 4-year students in the lowest HSGPA Private Nonprofit 4-year 74% 77% category, 40% of low-income students completed Public 2-year 13% 18% 32% a degree within 6 years while 63% of high-income Overall Sector Overall Completion Rate For-Profit 8% 16% 23% students did. ƒ Among undergraduate students who started Low Income 33% 7% 40% 2.9 and college for the first time in 2011-12, 66% of those Lower Middle Income 45% 10% 55% whose first enrollment was at a public 4-year High Income 55% 8% 63% institution and 77% of those who started at a private nonprofit 4-year institution completed Low Income 52% 9% 61% either an associate or a bachelor’s degree within 3.0 to 3.4 Middle Income 62% 6% 68% 6 years. In contrast, 32% of public 2-year students High Income 75% 5% 80% and 23% of for-profit students completed an Public 4-Year Public associate or bachelor’s degree within 6 years. Low Income 61% 63% 3.5 to 4.0 Middle Income 81% 84% ALSO IMPORTANT: High Income 89% 90% ƒ Figure 1.4 shows the shares of students who had Low Income 49% 9% 58% completed an associate or bachelor’s degree within 2.9 and Lower Middle Income 60% 7% 67% 6 years. In addition, 2% of public 4-year, 1% of private nonprofit 4-year, 8% of public 2-year, and 24% of High Income 66% 69% for-profit students had completed a certificate within Low Income 61% 63% 6 years. (NCES, BPS 2012/2017; calculations by the authors) 3.0 to 3.4 Middle Income 80% 83% ƒ High Income 84% 85% Full-time students are more likely to complete credentials than part-time students. Among students Low Income Private Nonprofit 4-Year Nonprofit Private 80% 80% who first enrolled in college in 2012, 80% of those 3.5 to 4.0 Middle Income 84% 87% who enrolled full time had completed a credential High Income 93% 93% 6 years later while only 21% of those who enrolled part time had. (Shapiro et. al., 2018, Table 16) Low Income 6% 17% 23% ƒ While students’ academic preparation is perhaps 2.9 and Lower Middle Income 12% 20% 32% the most important predictor of their likelihood High Income 18% 17% 35% of completing a credential, studies have shown that initial college choice has a causal impact on Low Income 15% 19% 34% completion. For example, among college students 3.0 to 3.4 Middle Income 19% 22% 42% in the public sector, access to 4-year institutions substantially increases bachelor’s degree High Income 30% 23% 52% Public 2-Year Public completion rates, particularly for low-income Low Income 12% 21% 33% students. (Goodman, Smith, & Hurwitz, 2015) 3.5 to 4.0 Middle Income 31% 24% 55% NOTES: Includes first-time undergraduate students who High Income 31% 15% 46% began their study in 2011-12. Completion status was as of June 2017. Parents’ income groups of dependent students were based on 2010 income: Low (less than $50,000), Low Income 8% 15% 23% Middle (between $50,000 and $99,999), and High ($100,000 Middle Income 16% 17% 33% or higher). For-profit sector is not broken down by HSGPA

For-Profit because of small sample size. Components may not sum to High Income 19% 16% 36% totals because of rounding. 0% 20% 40% 60% 80% 100% SOURCES: NCES, Beginning Postsecondary Students Completion Rate 2012/2017; PowerStats calculations by the authors.

13 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. Educational Attainment The percentage of young adults in the U.S. between the ages of 25 and 34 with at least a bachelor’s degree grew from 11% in 1960 to 24% in 1980 and 1990. In 2018, 39% of adults in this age group had earned at least a bachelor’s degree.

FIGURE 1.5A ƒ Educational Attainment of Individuals Age 25 to 34, 1940 to 2018, The percentage of adults age 25 to 34 with some Selected Years college or an associate degree grew rapidly in the 1970s and again in the 1990s. It has stabilized Less than a High School Some College Bachelor’s since 2000 at 28%. High School Diploma or Associate Degree or ƒ Diploma Degree Higher In 1940, 86% of adults in the U.S. age 25 to 34 had no postsecondary education experience. By 1980, 2018 8% 26% 28% 39% that percentage had decreased to 55% and has since decreased by another 21 percentage points 2010 12% 27% 28% 33% to 34% in 2018. ƒ 2000 12% 31% 28% 29% In 2018, about 10% of adults age 25 to 49 held an associate degree, and 39% held at least a 1990 14% 41% 22% 24% bachelor’s degree.

1980 15% 40% 22% 24% ALSO IMPORTANT: ƒ 1970 26% 44% 14% 16% The fact that the earnings differential between high school graduates and college graduates has 1960 42% 36% 11% 11% increased over time despite the increasing prevalence of college degrees indicates that the demand for 1950 49% 32% 9% 5% college-educated workers in the labor market has increased more rapidly than the supply. (See Goldin & 1940 64% 22% 7% 6% Katz [2008] and Autor [2010] for discussion of the failure of the supply of college graduates to keep up with the demand.) NOTE: Percentages may not sum to 100 because of rounding. ƒ SOURCE: U.S. Census Bureau, Educational Attainment in the United States, 2018, Table A-1. According to the Organisation for Economic Co-operation and Development (OECD), Korea had FIGURE 1.5B the highest educational attainment among all OECD Educational Attainment of Individuals by Age Group, 2018 countries in 2018 with 70% of 25- to 34-year-olds having completed tertiary education. (OECD, 2019, 100% Chart A1.2)

29% 33% 80% 39% 39%

Bachelor’s Degree 8% or Higher 11% 60% Associate Degree 10% 11% 16% 16% Some College, No Degree 18% 15% 40% High School Diploma

33% Less than a High 31% School Diploma 25% 20% 26%

14% 8% 10% 10% 0% 25 to 34 35 to 49 50 to 64 65 and Older

NOTE: Percentages may not sum to 100 because of rounding. SOURCE: NCES, Digest of Education Statistics, 2018, Table 104.30.

14 EDUCATION PAYS 2019 Part 1: Distribution of Benefits Educational Attainment by Race/Ethnicity and Gender Among blacks, whites, and Hispanics between the ages of 25 and 29, females outpace males in terms of both high school and bachelor’s degree completion. This gender gap emerged in the 1990s.

FIGURE 1.6 ƒ Percentage of 25- to 29-Year-Olds Who Have Completed High School Between 1978 and 2018, the percentage of or a Bachelor’s Degree, by Race/Ethnicity and Gender, 1978 to 2018 black females age 25 to 29 who held a bachelor’s degree nearly doubled from 13% to 25%, while the At Least a High School Diploma At Least a Bachelor’s Degree percentage of black males with a bachelor’s degree Male Female Male Female increased from 12% to 20%. ƒ Between 1978 and 2018, the percentage of Hispanic Black, Non-Hispanic females age 25 to 29 who held a bachelor’s degree 100% 92% tripled from 7% to 22%, while the percentage of 87% 88% 81% 92% Hispanic males with a bachelor’s degree nearly 80% 76% 87% 86% doubled from 9% to 17%. 84% ƒ 74% Between 1978 and 2018, the percentage of white 60% females age 25 to 29 who held a bachelor’s degree more than doubled from 22% to 47%, while the

40% percentage of white males with a bachelor’s degree increased from 29% to 39%. 25% 21% ƒ 20% 17% Between 2008 and 2018, the percentage of white 13% 12% 20% 18% and Hispanic males or females age 25 to 29 with 12% 12% 13% a bachelor’s degree increased by about 7 to 9 0% 1978 1983 1988 1993 1998 2003 2008 2013 2018 percentage points, while the increase was about 2 to 4 percentage points among black males or females over this time period. Hispanic 100%

85% ALSO IMPORTANT: 80% ƒ 70% 81% The share of all young adults age 25 to 29 with at 62% 65% least a bachelor’s degree was 36% in 2018; this share 59% 60% ranged from 19% for Hispanics and 23% for blacks to 62% 59% 60% 56% 43% for whites and 66% for Asians. (NCES, Digest of Education Statistics, 2018, Table 104.30) 40%

22% 20% 15% 9% 10% 11% 17% 9% 10% 8% 0% 7% 1978 1983 1988 1993 1998 2003 2008 2013 2018

White, Non-Hispanic 100% 94% 95% 96% 89% 90% 95% 92% 93% 89% 80%88%

60% 47% 39% 40% 34% 29% 39% 25% 31% 32% 20% 24% 22% NOTE: Attainment rates are three-year moving averages.

0% SOURCES: NCES, The Condition of Education, 2007, Table 27; 1978 1983 1988 1993 1998 2003 2008 2013 2018 Digest of Education Statistics, 2018, Table 104.30.

15 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. College Enrollment and Attainment by State The percentage of 18- to 24-year-olds enrolled in college in 2017 ranged from 29% in Alaska and 31% in Nevada to 56% in the District of Columbia and 57% in Rhode Island.

FIGURE 1.7 ƒ Postsecondary Enrollment Rates of 18- to 24-Year-Olds and In 2017, the percentage of adults age 25 and older Percentage of All Adults with at Least a Bachelor’s Degree in 2017 with at least a bachelor’s degree ranged from 20% in West Virginia and 22% in Mississippi to 44% in % of Adults with at Least a % of 18- to 24-Year-Olds Enrolling Massachusetts and 57% in the District of Columbia. Bachelor’s Degree in Postsecondary Education ƒ Iowa, Michigan, Nebraska, and Wisconsin have 29% AK 29% 25% NV 31% college enrollment rates above the national 31% MT 33% average of 43%, but bachelor’s degree attainment 27% NM 33% rates are slightly lower than the national average 28% WY 34% of 32%. 27% ID 34% 33% HI 35% 36% WA 35% 25% OK 37% ALSO IMPORTANT: 24% AR 37% ƒ In 2018, median household income in the United 24% KY 37% States was $63,200. Median household income was 27% TN 37% 20% WV 38% under $50,000 in Mississippi, New Mexico, Arkansas, 30% TX 38% Alabama, and Louisiana; it was over $80,000 in Hawaii, 29% AZ 39% New Hampshire, District of Columbia, Maryland, and 31% GA 39% Massachusetts. (U.S. Census Bureau, Social and OR 39% 34% Economic Supplement, Table H-8) 24% LA 39% 26% AL 39% 31% NC 39% 29% MO 40% 28% SD 40% 34% KS 41% 28% OH 41% 28% SC 41% 34% UT 41% 41% CO 41% 27% IN 42% 22% MS 42% 31% ND 42% 30% FL 43% 32% US 43% 33% ME 43% 34% IL 43% 36% MN 44% 31% NE 44% 32% PA 44% 29% IA 44% 37% VT 44% 30% WI 45% 39% VA 45% 40% MD 45% 29% MI 46% 37% NH 46% 40% NJ 46% 36% NY 48% 38% CT 48% 34% CA 49% 32% DE 49% 44% MA 53% 57% DC 56% 34% RI 57%

60% 40% 20% 0% 0% 20% 40% 60%

SOURCES: NCES, Digest of Education Statistics, 2018, Tables 104.88 and 302.65.

16 EDUCATION PAYS 2019 Part 1: Distribution of Benefits Education, Earnings, and Tax Payments In 2018, median earnings of bachelor’s degree recipients with no advanced degree working full time were $24,900 higher than those of high school graduates. Bachelor’s degree recipients paid an estimated $7,100 more in taxes and took home $17,800 more in after-tax income than high school graduates. ƒ On average, taxes take a larger share of the incomes of ALSO IMPORTANT: individuals with higher earnings, so the after-tax earnings ƒ premium is slightly smaller than the pretax earnings premium. In 2018, 76% of 4-year college graduates age 25 and older had ƒ earnings and 59% worked full time; 59% of high school graduates Median earnings for individuals with associate degrees working age 25 and older had earnings, and 44% worked full time. full time were 24% higher than median earnings for those with ƒ only a high school diploma. After-tax earnings were 22% higher. Not all the differences in earnings reported here may be attributable to ƒ education level. Educational credentials are correlated with a variety of The median total tax payments of full-time workers with a other factors that affect earnings, including parents’ socioeconomic professional degree in 2018 were over 3.7 times as high as the status and some personal characteristics. median tax payments of high school graduates working full time. ƒ After-tax earnings were about 2.8 times as high. While the average high school graduate may not earn as much as the average college graduate simply by obtaining a bachelor’s degree, rigorous research on the subject suggests that the figures cited here do not measurably overstate the financial return to higher education. (Card, 2001; Carneiro, Heckman, & Vytlacil, 2011; Rouse, 2005; Harmon, Oosterbeek, & Walker, 2003; Oreopoulos & Petronijevic, 2013)

FIGURE 2.1 Median Earnings and Tax Payments of Full-Time Year-Round Workers Age 25 and Older, by Education Level, 2018 Estimated Taxes After-Tax Income

Professional Degree (2%) $32,400 $88,100 $120,500

Doctoral Degree (3%) $26,700 $75,600 $102,300

Master’s Degree (12%) $20,100 $60,100 $80,200

Bachelor’s Degree (27%) $15,800 $49,600 $65,400

Associate Degree (11%) $11,400 $38,700 $50,100

Some College, No Degree (15%) $10,300 $36,000 $46,300

High School Diploma (25%) $8,700 $31,800 $40,500

Less than a High School Diploma (6%) $6,200 $24,600 $30,800

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000

NOTES: The percentages in parentheses on the vertical axis indicate the shares of all full-time year-round workers age 25 and older with each education level in 2018. The bars in this graph show median earnings at each education level. The light blue segments represent the estimated average federal income, Social Security, Medicare, state and local income, sales, and property taxes paid at these income levels. The dark blue segments show after-tax earnings. Percentages may not sum to 100 because of rounding. SOURCES: U.S. Census Bureau, Income, Poverty, and Health Insurance in the United States, 2018, Table PINC-03; Internal Revenue Service, 2017; Wiehe et al., 2018; calculations by the authors.

17 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. Earnings Premium Relative to Price of Education The typical 4-year college graduate who enrolls at age 18 and graduates in four years can expect to earn enough relative to a high school graduate by age 33 to compensate for being out of the labor force for four years and for borrowing the full tuition and fees and books and supplies without any grant aid.

FIGURE 2.2A ƒ Estimated Cumulative Full-Time Median Earnings (in 2017 Dollars) For the typical associate degree recipient who Net of Loan Repayment for Tuition and Fees and Books and Supplies, pays the published tuition and fees and books by Education Level and supplies at a community college and earns an associate degree 2 years after high school High School Some College, Associate Bachelor’s graduation, total earnings exceed those of high Diploma No Degree Degree Degree school graduates by age 31. ƒ $1,200,000 For the typical student who attends a public college for a year and leaves without a degree, total earnings exceed those of high school $1,000,000 graduates by age 36. ƒ The longer college graduates remain in the workforce, the greater the payoff to their $800,000 investment in higher education.

$600,000 ALSO IMPORTANT: ƒ Figure 2.2A shows the cumulative earnings for full-time year-round workers. Individuals with higher $400,000 Cumulative Net Earnings Cumulative levels of education are more likely to work full time year-round than those with lower levels of education. ƒ Figure 2.2A shows the cumulative earnings using $200,000 median earnings and weighted average 4-year tuition and fees and books and supplies. Results using some alternative assumptions are shown in Figure 2.2B. $0 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 Age

Assumptions for Figure 2.2A Median Earnings by Education Level and Age, 2013–2017

Age Starting Price of Tuition and Fees High School Some College, Associate Bachelor’s Full-Time Work and Books and Supplies Age Diploma No Degree Degree Degree High School 18 None 18 $18,600 $0 $0 $0 Some College, No Degree 19 Weighted average of public 2-year and public 19 $18,600 $16,600 $0 $0 4-year price. 2017-18: $9,230. 20 $22,600 $23,000 $25,600 $0 Associate Degree 20 Average public 2-year price. 21 $22,600 $23,000 $25,600 $0 2017-18: $4,960; 2018-19: $5,070. 22 to 24 $22,600 $23,000 $25,600 $35,400 Bachelor’s Degree 22 Weighted average of public and private nonprofit 4-year price. 2017-18: $18,840; 25 to 29 $29,300 $31,400 $35,400 $46,000 2018-19: $19,300; 2019-20: $19,830; 2020-21: $20,420. 30 to 34 $31,900 $37,100 $41,200 $55,200 35 to 39 $36,300 $41,900 $46,600 $65,700 NOTES: Excludes bachelor’s degree recipients who earn advanced degrees. Assumes students 40 to 44 $37,300 $45,500 $49,500 $70,800 borrow the cost of tuition and fees and books and supplies and pay it off over 10 years after graduation with a 4.45% annual interest rate during and after college. Tuition/loan payments 45 to 49 $40,100 $47,800 $51,800 $74,300 and earnings are discounted at 3%, compounded every year beyond age 18. The 2020-21 price 50 to 54 $41,200 $49,400 $52,300 $75,800 is projected using the 2019-20 price and a 3% annual increase. 55 to 59 $41,200 $49,600 $52,600 $73,600 SOURCES: U.S. Census Bureau, American Community Survey, 2013–2017 Five-Year Public Use 60 to 64 $40,400 $49,300 $52,300 $70,000 Microdata Sample; College Board, Trends in College Pricing, 2019; calculations by the authors.

18 EDUCATION PAYS 2019 Part 2: Individual and Societal Benefits Earnings Premium Relative to Price of Education: Alternative Scenarios The break-even age (age at which cumulative earnings of college graduates exceed those of high school graduates) increases with amount of time students take to earn their degrees. Grant aid that reduces the net price of college shortens the break-even period.

FIGURE 2.2B ƒ Age at Which Cumulative Earnings of College Graduates Exceed The break-even age depends on the length of study. Those of High School Graduates, by Degree and College Cost As an example, for students paying the published price and taking 5 years to complete a bachelor’s 40 degree, the break-even age is 36. Full-pay students 37 36 who complete a bachelor’s degree in four years 33 have a projected break-even age of 33. 31 30 30 30 ƒ Compared with high school graduates with median earnings working full time, the break-even age for associate degree recipients with median 20 earnings is 31 if they pay the average public 2-year published tuition and fees and books and supplies for 2 years. The break-even age increases to 37 if High School Graduates High School 10 they pay these expenses for 3 years; it is 30 if they

Break-even Age Compared with Compared Age Break-even receive the average amount of grant aid and pay net tuition and fees and buy books and supplies 0 2 Years of 3 Years of 2 Years of 4 Years of 5 Years of 4 Years of for two years. Average Average Average Average Average Average Public Public Public Public Public and Public and 2-Year 2-Year 2-Year and Private Private Private Published Published Net Price Nonprofit Nonprofit Nonprofit ALSO IMPORTANT: Price Price 4-Year 4-Year 4-Year ƒ Published Published Net Price The calculations for Figures 2.2A and 2.2B are based Price Price on median earnings for full-time year-round workers. Associate Degree Bachelor’s Degree There is considerable variation in earnings within each education level (Figure 2.3). Tuition and Fees and Books and Supplies ƒ Figures 2.2A and 2.2B assume that students have no earnings while attending school full time. Many students work part time while in school.

Assumptions for Figure 2.2B

Age Starting Price of Tuition and Fees and Books Education Level Full-Time Work and Supplies High School 18 None Associate Degree Baseline (2 years of average public 20 2017-18: $4,960; 2018-19: $5,070. 2-year published price) 3 years of average public 2-year 21 2017-18: $4,960; 2018-19: $5,070; published price 2019-20: $5,190. NOTES: Excludes bachelor’s degree recipients who earn 2 years of average public 2-year 20 2017-18: $910; 2018-19: $980. net price advanced degrees. Assumes students borrow the cost of tuition and fees and books and supplies and pay it off over Bachelor’s Degree 10 years after graduation with a 4.45% annual interest rate Baseline (4 years of average public 22 2017-18: $18,840; 2018-19: $19,300; during and after college. Tuition/loan payments and earnings and private nonprofit 4-year 2019-20: $19,830; 2020-21: $20,420. are discounted at 3%, compounded every year beyond age 18. published price) The 2020-21 and 2021-22 prices are projected using the 5 years of average public and private 23 2017-18: $18,840; 2018-19: $19,300; 2019-20 price and a 3% annual increase. nonprofit 4-year published price 2019-20: $19,830; 2020-21: $20,420; SOURCES: U.S. Census Bureau, American Community Survey, 2021-22: $21,030. 2013–2017 Five-Year Public Use Microdata Sample; College 4 years of average public and private 22 2017-18: $7,990; 2018-19: $8,030; Board, Trends in College Pricing, 2019; calculations by nonprofit 4-year net price 2019-20: $8,350; 2020-21: $8,600. the authors.

19 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. Variation in Earnings Within Levels of Education Median earnings are higher for those with higher levels of education, but there is considerable variation in earnings at each level of educational attainment.

ƒ The percentage of full-time year-round workers age 35 to 44 ALSO IMPORTANT: earning $100,000 or more in 2018 ranged from 2% of those ƒ without a high school diploma and 5% of high school graduates Figure 2.3 includes only full-time year-round workers. The to 28% of those whose highest attainment was a bachelor’s percentage of individuals who are employed rises with level of degree and 43% of advanced degree holders. education, as does the percentage of those employed who work ƒ full time. (Bureau of Labor Statistics, Labor Force Statistics from In 2018, while 5% of all full-time year-round workers age 35 to 44 the Current Population Survey) earned less than $20,000, 20% of those without a high school ƒ diploma and 8% of those with only a high school diploma were Figure 2.3 includes workers between the ages of 35 and 44, an age in this income category. In contrast, only 2% of those whose group when the majority of full-time workers have finished school highest attainment was a bachelor’s degree and 1% of those and started a career. with advanced degrees fell into this category. ƒ Some of the variation in earnings is associated with fields of study, ƒ occupation, and location. Earnings also differ by gender and In 2018, 19% of all full-time year-round workers age 35 to 44 race/ethnicity. (Baum, Kurose, & Ma, 2013) held advanced degrees, 27% held bachelor’s degrees, while 23% held only a high school diploma and 7% did not graduate from high school.

FIGURE 2.3 Earnings Distribution of Full-Time Year-Round Workers Age 35 to 44, by Education Level, 2018

$1 to $20,000 to $40,000 to $60,000 to $80,000 to $100,000 $19,999 $39,999 $59,999 $79,999 $99,999 and over

All (100%) 5% 25% 24% 17% 10% 19%

1%

Advanced Degree (19%) 5% 18% 18% 15% 43%

2%

Bachelor’s Degree (27%) 15% 22% 20% 13% 28%

Associate Degree (11%) 4% 27% 31% 19% 10% 10%

Some College, No Degree (14%) 6% 32% 27% 18% 9% 9%

High School Diploma (23%) 8% 40% 27% 14% 5% 5%

2%

Less than a High School Diploma (7%) 20% 50% 20% 5% 2%

NOTES: The percentages shown in parentheses on the vertical axis represent shares of all full-time year-round workers age 35 to 44 with each education level. Percentages may not sum to 100 because of rounding. SOURCES: U.S. Census Bureau, Income, Poverty, and Health Insurance in the United States, 2018, PINC-03; calculations by the authors.

20 EDUCATION PAYS 2019 Part 2: Individual and Societal Benefits Earnings by Race/Ethnicity, Gender, and Education Level Between 2016 and 2018, median earnings of individuals age 25 to 34 working full time year-round with a bachelor’s degree ranged from $42,100 among black females and $43,900 among Hispanic females to $72,300 among Asian males.

FIGURE 2.4 Median Earnings (in 2018 Dollars) of Full-Time Year-Round Workers Age 25 to 34, by Race/Ethnicity, Gender, and Education Level, 2016–2018

Less than a High School Some College, Associate Bachelor’s Advanced High School Diploma Diploma No Degree Degree Degree Degree $100,000 $89,100 $77,200 $76,200 $80,000 $75,700 $72,300 $70,600 $69,900 $62,000 $60,900 $60,800 $60,200 $57,300 $56,000 $60,000 $56,100 $51,600 $50,200 $49,000 $48,500 $47,600 $46,000 $43,900 $43,200 $42,100 $41,800 $41,100 $41,100 $40,700 $40,900 $40,500 $39,500 $37,400 $36,600 $35,400 $40,000 $35,300 $34,800 $34,100 Median Earnings $33,900 $33,500 $33,000 $32,300 $31,900 $31,600 $31,500 $31,300 $31,100 $31,000 $31,100 $30,400 $29,200 $29,300 $29,100 $28,700 $28,500 $26,900 $26,800 $26,500 $23,500 $23,000 $21,600 $18,700 $20,000

$0 Female Male Female Male Female Male Female Male Female Male

Asian Black Hispanic White All

NOTES: Based on combined data from the 2017, 2018, and 2019 Annual Social and Economic Supplement of the Current Population Survey. Earnings in 2016 and 2017 are adjusted to 2018 dollars using the Consumer Price Index for all urban consumers. Median earnings are the medians of combined data. The “Asian,” “Black,” and “White” categories include individuals who reported one race only and who reported non-Hispanic. SOURCES: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2017, 2018, and 2019; calculations by the authors. ƒ The earnings premium for a bachelor’s degree relative to a high Ratio of Median Earnings of Bachelor’s Degree Recipients to Median school diploma was the highest among Asian males and females, Earnings of High School Graduates, by Race/Ethnicity and Gender, whose median earnings were about twice as high as for those Full-Time Year-Round Workers, 2016–2018

with a high school diploma. BA/HS Earnings Ratio ƒ The earnings gap between 25- to 34-year-old associate degree Age 25 to 34 Age 25 and Older recipients and high school graduates working full time ranged Asian Female 1.93 2.05 from 14% ($4,400) among white females to 29% ($9,000) among Male 2.08 1.94 black males. Black Female 1.57 1.67 ƒ Among full-time workers age 25 to 34, median earnings of white Male 1.51 1.50 males with a bachelor’s degree were 23% higher than median Hispanic Female 1.63 1.62 earnings of white females with a bachelor’s degree. The gender Male 1.46 1.51 gaps were: 29% among Asian, 17% among Hispanic, and 13% White Female 1.62 1.57 among black bachelor’s degree recipients. Male 1.52 1.61 All Female 1.66 1.69 ALSO IMPORTANT: Male 1.63 1.68 ƒ Between 2016 and 2018, the proportion of individuals age 25 to 34 working full time year-round ranged from 41% for those without a high school diploma to 70% for those with an advanced degree.

21 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. Earnings by Gender and Education Level Earnings of full-time year-round workers are strongly correlated with level of education, but there is considerable variation in earnings among both men and women at each level of educational attainment. ƒ In 2018, median earnings of female 4-year college graduates were ALSO IMPORTANT: $56,700. This exceeded median earnings of female high school ƒ graduates by 74% ($24,100). Median earnings of male bachelor’s In 2018, 14% of female high school graduates earned more than degree recipients were $75,200. This exceeded median earnings the median for female college graduates, and 15% of female of male high school graduates by 65% ($29,600). college graduates earned less than the median for female high ƒ school graduates. In 2018, 25% of females with a college degree earned less than ƒ $40,500 and 25% earned more than $81,600. Among male college In 2018, 17% of male high school graduates earned more than the graduates, 25% earned less than $50,400 and 25% earned above median for male college graduates, and 21% of male college graduates $110,000. earned less than the median for male high school graduates. ƒ ƒ In 2018, 61% of males with some college education but no degree Figure 2.5 includes only full-time year-round workers ages 25 and and 68% of males holding associate degrees earned more than older. Among both men and women, the percentage of individuals who are employed rises with level of education, as does the percentage of the median earnings of male high school graduates ($45,600). ƒ those employed who are working full time. (Bureau of Labor Statistics, In 2018, 61% of females with some college education but no degree Labor Force Statistics from the Current Population Survey) and 67% of females holding associate degrees earned more than the median earnings of female high school graduates ($32,600).

FIGURE 2.5 Median, 25th Percentile, and 75th Percentile Earnings of Full-Time Year-Round Workers Age 25 and Older, by Gender and Education Level, 2018 $235,000

75th Percentile $200,000 $190,000 Median 25th Percentile

$155,000 $148,000 $150,000 $140,000 $135,400

$115,800 $110,000 $99,800 $99,600 $95,200 $100,000 $94,100

Earnings $81,600 $76,300 $78,500 $75,200 $66,700 $78,100 $62,700 $77,400 $57,100 $56,700 $56,700 $51,700 $52,900 $62,200 $63,500 $46,300 $59,600 $48,500 $45,600 $50,000 $41,500 $38,800 $50,500 $50,400 $33,300 $32,600 $34,000 $40,500 $40,700 $35,900 $24,500 $31,600 $27,800 $30,400 $24,700 $23,300 $19,000 $0 Less than a Some College, Bachelor’s Doctoral Less than a Some College, Bachelor’s Doctoral High School No Degree Degree Degree High School No Degree Degree Degree Diploma Diploma High School Associate Master’s Professional High School Associate Master’s Professional Diploma Degree Degree Degree Diploma Degree Degree Degree

Female Male

NOTES: This graph shows earnings by education level separately for female and male full-time year-round workers age 25 and older. The bottom of each bar shows the 25th percentile; 25% of the people in the group earn less than this amount. The box shows median earnings for the group. The top of the bar shows the 75th percentile; 25% of the people in the group earn more than this amount. SOURCES: U.S. Census Bureau, Income, Poverty, and Health Insurance in the United States, 2018, PINC-03; calculations by the authors.

22 EDUCATION PAYS 2019 Part 2: Individual and Societal Benefits Earnings over Time by Gender and Education Level In 2018, among full-time year-round workers between the ages of 25 and 34, median earnings for women with at least a bachelor’s degree were $52,500, compared with $29,800 for those with a high school diploma. ƒ In 2018, among full-time year-round workers between the ages ALSO IMPORTANT: of 25 and 34, median earnings for men with at least a bachelor’s ƒ degree were $63,300, compared with $39,800 for those with a In 2018, 54% of 25- to 34-year-old women worked full time, ranging high school diploma. from 26% of those without a high school diploma to 65% of those ƒ with at least a bachelor’s degree. Between 2013 and 2018, inflation-adjusted median earnings ƒ of full-time year-round workers age 25 to 34 increased by 15% In 2018, 72% of 25- to 34-year-old men worked full time, ranging for male high school graduates and 3% for men with at least a from 50% of those without a high school diploma to 78% of those bachelor’s degree. For women, the five-year percentage change with at least a bachelor’s degree. was 4% for both high school graduates and those with at least a bachelor’s degree. ƒ Among those with a bachelor’s degree or higher, 26% of men and 33% of women had advanced degrees in 2018, compared with 28% of men and 30% of women a decade earlier.

FIGURE 2.6 Median Earnings (in 2018 Dollars) of Full-Time Year-Round Workers Age 25 to 34, by Gender and Education Level, 1978 to 2018

$80,000

$70,000

Advanced Degree $60,000 Bachelor’s Degree or Higher

$50,000 Bachelor’s Degree

Associate Degree $40,000 Some College or Associate Degree

$30,000 Some College

High School

Median Earnings in 2018 Dollars $20,000 Graduate Grades 9 to 11

$10,000

$0 1978 1983 1988 1993 1998 2003 2008 2013 2018 1978 1983 1988 1993 1998 2003 2008 2013 2018 Female Male

Percentage of “Bachelor’s Degree or Higher” with Advanced Degrees (Master’s, Doctoral, or Professional)

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Female 24% 23% 22% 24% 26% 27% 27% 27% 28% 31% 30% 28% 32% 31% 32% 31% 32% 34% 32% 32% 33% Male 22% 22% 21% 23% 24% 25% 25% 25% 25% 24% 28% 27% 24% 25% 25% 28% 28% 28% 30% 27% 26%

SOURCES: Data for 1993 and prior: NCES, The Condition of Education, 2014; Data for 1994 and after: U.S. Census Bureau, Income, Poverty, and Health Insurance in the United States, 1995 to 2018, PINC tables; CPI-U: Bureau of Labor Statistics; calculations by the authors.

23 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. Earnings Paths Across all education levels, earnings generally increase fastest between the ages of 25 and 34 and peak between the ages of 50 and 59.

ƒ ƒ Between 2013 and 2017, median earnings for individuals age 50 Between 2013 and 2017, the gap between median earnings to 54 working full time year-round whose highest degree was a of associate degree holders and high school graduates was bachelor’s degree were 65% higher than the median earnings for $6,100 (21%) for 25- to 29-year-olds and $12,300 (33%) for 25- to 29-year-olds with this level of education. For high school 40- to 44-year-olds. graduates, earnings of the older group were 41% higher than ƒ The earnings path is the steepest for individuals with advanced earnings of the younger group. degrees. Between 2013 and 2017, the gap in median earnings ƒ The gap between median earnings of college graduates without between those with professional degrees and those with advanced degrees and high school graduates ranged from bachelor’s degrees was 30% for 25- to 29-year-olds and 88% $16,700 (57%) for 25- to 29-year-olds to $34,200 (85%) for for 60- to 64-year-olds. 45- to 49-year-olds between 2013 and 2017.

FIGURE 2.7 Median Earnings (in 2017 Dollars) of Full-Time Year-Round Workers, by Age and Education Level, 2013–2017

$140,000 Professional Degree

$120,000 Doctoral Degree

$100,000 Master’s Degree

$80,000 Bachelor’s Degree

Median Earnings Associate Degree $60,000

Some College, No Degree $40,000

High School Diploma $20,000

Less than a High School $0 Diploma 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 Age

Median Earnings of Full-Time Year-Round Workers, 2013–2017 Less than a High Some College, School Diploma High School Diploma No Degree Associate Degree Bachelor’s Degree Master’s Degree Doctoral Degree Professional Degree 25 to 29 $24,900 $29,300 $31,400 $35,400 $46,000 $52,300 $63,700 $59,600 50 to 54 $30,600 $41,200 $49,400 $52,300 $75,800 $88,100 $111,200 $131,500 60 to 64 $31,100 $40,400 $49,300 $52,300 $70,000 $82,600 $106,200 $131,500

NOTES: Based on the 2013 to 2017 American Community Survey five-year combined data file. Earnings are adjusted to 2017 dollars using the Consumer Price Index for all urban consumers from the Bureau of Labor Statistics. Median earnings are the median of combined data. SOURCES: U.S. Census Bureau, American Community Survey, 2013–2017 Five-Year Public Use Microdata Sample; calculations by the authors.

24 EDUCATION PAYS 2019 Part 2: Individual and Societal Benefits Earnings by Occupation and Education Level Many 4-year college graduates work in occupations that also employ a significant number of individuals with no college credentials. In all these occupations, bachelor’s degree recipients earn more than high school graduates on average. ƒ Within each education level, earnings vary considerably ALSO IMPORTANT: by occupation. ƒ ƒ Figure 2.8 shows occupational differences in earnings, which do Between 2013 and 2017, among occupations that employ large not necessarily correspond to differences in earnings related to numbers of both high school graduates and college graduates, postsecondary fields of study shown in Figure 2.9. the median earnings of those with only a high school diploma ƒ ranged from $31,400 (in 2017 dollars) for retail salespersons Some occupations require at least a bachelor’s degree. While most to $60,100 for general and operations managers; the median of these occupations (for example, doctors and lawyers) have high earnings of those with at least a bachelor’s degree ranged from payoffs in terms of earnings, others (such as teaching) are not as $41,800 (in 2017 dollars) for administrative assistants to $89,500 remunerative. (Baum, Kurose, & Ma, 2013, Section 8) for first-line supervisors of nonretail workers. ƒ Between 2013 and 2017, the earnings gap between those with at least a bachelor’s degree and high school graduates working in the same occupation varied significantly, ranging from 15% for bookkeeping, accounting, and auditing clerks to 75% for first-line supervisors of nonretail sales workers.

FIGURE 2.8 Median Earnings (in 2017 Dollars) of Full-Time Workers Age 25 and Older with a High School Diploma and Those with at Least a Bachelor’s Degree, by Occupation, 2013–2017

High School Diploma Bachelor’s Degree or Higher

$100,000 $89,500 $88,100 $89,200

$80,000 $72,800

$63,700 $60,100 $60,000 $52,600 $51,000 $51,500 $51,500 $48,500 $45,500 $41,800 $42,900 $42,500 $40,000 $36,000 $37,200 $37,600

Median Earnings $31,400 $31,900

$20,000

$0 Retail Customer Administrative Bookkeeping, First-Line First-Line First-Line Wholesale First-Line General and Salespersons Service Assistants Accounting, Supervisors of Supervisors Supervisors and Supervisors Operations Representatives and Auditing Retail Sales of Office of Nonretail Manufacturing of Production Managers Clerks Workers and Admin. Sales Sales Reps and Operating Support Workers Workers Workers

First-Line First-Line First-Line Supervisors Customer Bookkeeping, First-Line Supervisors of Supervisors Wholesale and of Production General and Retail Service Administrative Accounting, and Supervisors of Office and Admin. of Nonretail Manufacturing and Operating Operations Salespersons Reps Assistants Auditing Clerks Retail Workers Support Workers Workers Sales Reps Workers Managers % of FT Workers with High School Diploma 30% 26% 28% 29% 29% 22% 21% 17% 38% 16% Bachelor’s Degree or Higher 26% 27% 22% 18% 26% 35% 44% 49% 17% 47% BA/HS Earnings Ratio 1.54 1.43 1.16 1.15 1.40 1.50 1.75 1.71 1.41 1.48

NOTE: Includes 10 largest occupations with at least 15% of full-time workers with only a high school diploma and another 15% with at least a bachelor’s degree. SOURCES: U.S. Census Bureau, American Community Survey, 2013–2017 Five-Year Public Use Microdata Sample; calculations by the authors.

25 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. Earnings by College Major In 2016 and 2017, the median earnings for bachelor’s degree recipients without an advanced degree was $40,000 per year for those in early career (age 22 to 27) and $68,000 for those in their mid-career (age 35 to 45).

FIGURE 2.9 ƒ Median Earnings of Early Career and Mid-Career College Graduates In 2016 and 2017, median earnings for early career Working Full Time, by College Major, 2016−2017 bachelor’s degree recipients ranged from $32,100 a year for early childhood education majors to Early Career Mid-Career $62,000 for computer science majors. For those in mid-career, median earnings ranged from $41,000 Computer Science $62,000 $95,000 to $95,000. Business Analytics $57,000 $88,000 ƒ The differences in earnings between early Economics $55,000 $90,000 career and mid-career varies greatly by major. For example, the gap between early career and Finance $52,000 $85,000 mid-career earnings is smaller for nursing and Mathematics $50,000 $80,000 accounting majors, who have relatively high early career earnings. By contrast, mid-career earnings Accounting $50,000 $72,000 are 86% higher than early career earnings for Nursing $50,000 $70,000 biology majors.

Physics $48,500 $94,000

General Business $45,000 $70,000 ALSO IMPORTANT: ƒ Political Science $42,000 $75,000 The share of college graduates who ultimately attend graduate school varies by college major. Overall, 37% Marketing $74,000 $42,000 of college graduates age 25 to 65 had a graduate Chemistry $41,000 $74,000 degree in 2016 and 2017. This rate ranges from 17% for marketing majors to over 60% for biology, Overall $40,000 $68,000 chemistry, and physics majors. (Federal Reserve Bank Communications $40,000 $70,000 of New York, 2019) ƒ Business Management $40,000 $65,000 While recent college graduates have relatively low levels of unemployment across majors, 43% were Art History $60,000 $38,900 underemployed in 2016 and 2017. These rates vary Secondary Education $38,000 $50,000 from 11% and 16% for nursing and elementary education majors to 60% and 63% for business Journalism $38,000 $65,000 management and leisure and hospitality majors. Philosophy $36,000 $62,000 (Federal Reserve Bank of New York, 2019) ƒ History $36,000 $66,000 Research suggests that different fields of study have different labor market payoffs, even after accounting Biology $65,000 $35,000 for institution and peer quality. In some cases, the Elementary Education $35,000 $43,000 additional labor market payoff to a particular field of study is as large as the college premium itself. English Language $35,000 $60,000 (Kirkeboen, Leuven, & Mogstad, 2016). Sociology $34,600 $56,000

Leisure and Hospitality $34,200 $58,000

Psychology $34,000 $56,000

Early Childhood Education $32,100 $41,000

$0 $20,000 $40,000 $60,000 $80,000 $100,000 Median Earnings

NOTES: Figures represent a 2016 and 2017 average. Median earnings are for full-time workers whose highest education level is a bachelor’s degree only. Early career graduates are those age 22 to 27, and mid-career graduates are those age 35 to 45. All figures exclude those currently enrolled in school. SOURCE: Federal Reserve Bank of New York, The Labor Market for Recent College Graduates, based on Census Bureau’s American Community Survey data.

26 EDUCATION PAYS 2019 Part 2: Individual and Societal Benefits Variation in Earnings by Institutional Sector Institutional median earnings vary by sector. From 2014 to 2015, the typical 4-year college’s median earnings of 2003-04 and 2004-05 federal student aid recipients ranged from $34,600 at for-profit institutions to $42,800 at private nonprofit institutions and $42,950 at public institutions.

FIGURE 2.10A ƒ Distribution of 2014 and 2015 Institutional Median Earnings of The 75th percentile of institutional median Federal Student Aid Recipients in 2003-04 and 2004-05, by Sector earnings at public 2-year colleges was lower than the 25th percentiles of public and private nonprofit 75th Percentile 4-year institutions. $50,800 Median ƒ $50,000 $48,800 The typical public 2-year college’s median 25th Percentile $42,950 $42,800 earnings were higher than those of for-profit $42,200 2-year institutions at $30,900 and $25,300, $40,000 respectively. $34,600 $34,300 $37,200 ƒ $35,900 $30,800 Average earnings were about the same ($52,100 $30,000 $30,900 $30,900 $25,300 versus $50,300) for dependent students who $27,700 attended public or private nonprofit 4-year $20,000 $22,300 colleges with 6-year bachelor’s degree graduation rates between 50% and 69%. ƒ Variation in earnings by colleges’ bachelor’s

Institutional Median Earnings $10,000 degree graduation rate was larger within the private nonprofit sector than in the public sector. $0 Public Private For-Profit Public For-Profit 4-Year Nonprofit 4-Year 2-Year 2-Year 4-Year ALSO IMPORTANT: ƒ NOTES: Median earnings by sector are based on median earnings of federal student aid The College Scorecard data include median and mean recipients in each institution. The bottom of each bar shows the 25th percentile; 25% of earnings aggregated at the college level for students institutions in the group had median earnings below this amount. The orange box shows median who have received federal student aid, disaggregated earnings for the group. The top of the bar shows the 75th percentile; 25% of institutions had by dependency status. Earnings are calculated median earnings above this amount. among students who are employed and not enrolled in college. Therefore, students who are enrolled in FIGURE 2.10B Average 2014 and 2015 Earnings of Dependent Federal Student Aid graduate school at the time of measurement are not Recipients in 2003-04 and 2004-05, by Sector and Graduation Rate included. However, students who have completed advanced degrees within 10 years of college entry are $80,000 $74,800 included. Finally, reported average earnings include both college degree completers and noncompleters.

$61,000 (The College Scorecard, Data Documentation) $60,000 ƒ The amount of time students spend in school, the $52,100 $50,300 degrees they earn, field of study, completion rates, $44,700 and incoming student characteristics all vary across $40,000 $35,700 institutional sectors, which influences the earnings data reported here.

Average Earnings ƒ Researchers have found a positive causal relationship $20,000 between college selectivity and earnings, especially among certain subgroups of students. (Dale & Krueger, 2014; Hoekstra, 2009; Zimmerman, 2014)

$0 70% or Between Lower 70% or Between Lower Higher 50% and 69% than 50% Higher 50% and 69% than 50%

Public 4-year Private Nonprofit 4-year Sector and Graduation Rate

NOTES: Earnings are defined as mean earnings of dependent students working and not enrolled 10 years after college entry. Data for 2003-04 and 2004-05 pooled cohorts and earnings are measured in 2014 and 2015 calendar years. College graduation rate categories are based on six-year bachelor’s degree graduation rates for the 2011 entering cohort (150% of normal time). SOURCES: U.S. Department of Education, College Scorecard Data; NCES, IPEDS fall 2017 data; calculations by the authors.

27 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. Employment In 2018, among adults between the ages of 25 and 64, 69% of high school graduates, 73% of those with some college but no degree, 78% of those with associate degrees, and 83% of those with 4-year college degree were employed.

FIGURE 2.11 ƒ Civilian Population Age 25 to 64: Percentage Employed, Between 2008 and 2013, the percentage of Unemployed, and Not in Labor Force, 2008, 2013, and 2018 individuals who were either unemployed or not in the labor force increased across all education levels. Employed Unemployed Not in Labor Force ƒ Between 2013 and 2018, the percentage of 1.8% individuals who were unemployed declined and the 2018 83.0% 15.3% percentage not in the labor force remained stable. 2013 81.2% 3.1% 15.7% ƒ The percentage of individuals who were not in the Bachelor’s 2008 Degree or Higher 83.2% 14.6% labor force was higher in 2018 than in 2008. The 2.2% increase ranged from 0.7 percentage points for 2.2% those with a bachelor’s degree or higher to 2018 78.0% 19.8% 3.8 percentage points for those with a high 2013 76.3% 4.3% 19.4% school diploma. Degree Associate 2008 80.2% 16.7% 3.1% ALSO IMPORTANT: 2.8% ƒ 2018 72.7% 24.5% The percentage of individuals who are unemployed (Figure 2.11) differs from the unemployment rate 2013 69.9% 5.3% 24.8% (Figure 2.12A), which is the ratio of unemployed No Degree

Some College, 2008 74.8% 21.2% individuals to the sum of employed and unemployed 4.0% individuals, excluding those who are not in the 2.9% labor force. 2018 68.8% 28.3% ƒ The length of unemployment spells has also 2013 66.4% 5.5% 28.1% fluctuated over time. In 2018, 1.4% of the civilian Diploma

High School labor force was unemployed for 15 weeks or longer. 2008 71.1% 24.5% This percentage reached a peak of 5.7% in 2010, at 4.3% the height of the Great Recession. (Bureau of Labor 3.4% Statistics, Table A-15, Alternative Measures of Labor 2018 57.3% 39.3% Underutilization) 2013 53.0% 6.7% 40.3% School Diploma Less than a High 2008 56.9% 37.4% 5.7%

Civilian Population Age 25 to 64, Number in Millions, 2008, 2013, and 2018

Less than a Bachelor’s High School High School Some College, Associate Degree or Diploma Diploma No Degree Degree Higher 2008 18.4 48.4 28.4 15.7 50.9 2013 17.4 47.8 28.4 17.7 55.6 2018 15.9 47.3 27.3 18.5 63.3

NOTES: To be considered a member of the labor force, individuals must either be employed or be actively seeking employment. Percentages may not sum to 100 because of rounding. SOURCES: U.S. Census Bureau, Basic Monthly Current Population Survey, January through December 2008, 2013, and 2018; calculations by the authors.

28 EDUCATION PAYS 2019 Part 2: Individual and Societal Benefits Unemployment The unemployment rate for individuals age 25 and older with at least a bachelor’s degree has consistently been about half of the unemployment rate for high school graduates.

ƒ Unemployment rates for all education groups peaked in 2010 at ALSO IMPORTANT: 4.7% for bachelor’s degree holders, 7.0% for associate degree ƒ holders, and 10.3% for those with a high school diploma. Among individuals with the same level of educational attainment, the ƒ unemployment rate differs by age and by race/ethnicity (Figure 2.12B Since 2010, unemployment rates have been declining every year and Figure 2.12C). across all education groups. In 2018, unemployment rates were 2.1% for bachelor’s degree holders, 2.8% for associate degree holders, and 4.1% for those with a high school diploma. ƒ Over the 20-year period from 1998 to 2018, the largest gaps between the unemployment rates of bachelor’s degree recipients and high school graduates occurred between 2009 and 2011 (about 5 to 6 percentage point gaps). The smallest gaps occurred between 1999 and 2001, as well as in 2018 (about 2 percentage point gaps).

FIGURE 2.12A Unemplo yment Rates of Individuals Age 25 and Older, by Education Level, 1998 to 2018

16%

Less than a High School 12% Diploma

High School Diploma

8% Some College, No Degree

Unemployment Rate Unemployment Associate Degree

4% Bachelor’s Degree or Higher

0% 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Unemployment Rates of Individuals Age 25 and Older, by Education Level, 1998 to 2018, Selected Years

Unemployment Rate BA/HS Less than a HS Diploma High School Diploma Some College, No Degree Associate Degree Bachelor’s Degree or Higher Unemployment Rate Ratio 1998 7.1% 4.0% 3.2% 2.5% 1.8% 0.45 2003 8.8% 5.5% 5.2% 4.0% 3.1% 0.56 2008 9.0% 5.7% 5.1% 3.7% 2.6% 0.45 2013 11.0% 7.5% 7.0% 5.4% 3.7% 0.49 2018 5.6% 4.1% 3.7% 2.8% 2.1% 0.53

SOURCES: Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey; calculations by the authors.

29 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. Unemployment In 2018, the unemployment rate for 25- to 34-year-olds with at least a bachelor’s degree was 2.2%, while the unemployment rate for high school graduates was 5.7%.

FIGURE 2.12B ƒ Unemployment Rates of Individuals Age 25 and Older, by Age and In 2018, unemployment rates of 25- to 34-year- Education Level, 2018 olds were 4.7% for those with some college but no degree and 3.1% for those with associate degrees. Less than a High School Some College, Associate Bachelor’s ƒ High School Diploma No Degree Degree Degree or Unemployment rates decline between the ages of Diploma Higher 25 and 54 for those with an associate degree or 10% less. For those with at least a bachelor’s degree, the unemployment rate is lowest for individuals 8.4% between the ages of 35 to 44. 8% ƒ The gaps in unemployment rates by education level are larger for blacks than for other racial/

6% 5.7% ethnic groups. In 2018, the gap between the 5.2% unemployment rates for blacks with at least a 4.9% 4.7% 4.6%

4.4% bachelor’s degree and black high school graduates 4.2% 4.0% 4% was 3.8 percentage points, compared with 1.5 3.4% 3.4% 3.4% 3.3% 3.2% 3.1% 3.1% 3.0% percentage points for whites, 1 percentage point 2.8% 2.8% Unemployment Rate Unemployment 2.6% 2.5%

2.3% for Hispanics, and no gap for Asians. 2.2% 2.2% 1.8% 2%

ALSO IMPORTANT: ƒ 0% Research suggests that graduating from college 25 to 34 35 to 44 45 to 54 55 to 64 65 and Older during a recession can result in lower initial earnings driven by adverse labor market conditions. SOURCES: U.S. Census Bureau, Current Population Survey, January through December 2018; (Oreopoulos, von Wachter, & Heisz, 2012) calculations by the authors. ƒ The gap in labor force participation rates between FIGURE 2.12C those with at least a bachelor’s degree and those Unemployment Rates of Individuals Age 25 and Older, by with a high school diploma ranged from 9 percentage Race/Ethnicity and Education Level, 2018 points for Hispanics to 16 percentage points for Asians Less than a High School Some College, Associate Bachelor’s and whites, and 18 percentage points for blacks. High School Diploma No Degree Degree Degree or Diploma Higher 10.4%

10%

8% 6.7% 5.8% 6% 5.6% Labor Force Participation Rates of Individuals Age 25 and

5.1% Older, by Race/Ethnicity and Education Level, 2018 4.6% 4.1% 4.1% Less 3.9%

3.7% 3.7% than a Some 3.5% 4% 3.5% 3.2%

3.1% High High College, Bachelor’s 2.9% 2.9% 2.9% Unemployment Rate Unemployment 2.8% School School No Associate Degree or 2.5% 2.5% 2.4% 2.4%

2.1% Diploma Diploma Degree Degree Higher 2.0% 2% Asian 41% 59% 66% 70% 75% Black 36% 60% 67% 73% 78% Hispanic 59% 70% 73% 76% 79% 0% Asian Black Hispanic White All White 48% 57% 62% 69% 73%

SOURCE: Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey, SOURCE: Bureau of Labor Statistics, Labor Force Statistics Table 7. from the Current Population Survey, Table 7.

30 EDUCATION PAYS 2019 Part 2: Individual and Societal Benefits Retirement Plans Individuals with higher education levels are more likely than others to be offered and to participate in retirement plans provided by their employers.

FIGURE 2.13 ƒ Employer-Provided Retirement Plan Coverage Among Full-Time In 2018, 40% of high school graduates age 25 and Year-Round Workers Age 25 and Older, by Sector and Education older working full time year-round in the private Level, 2018 sector were offered a retirement plan, compared with 49% of those whose highest degree was Less than a High School Some College, Associate Bachelor’s Advanced a bachelor’s degree. In the public sector, these High School Diploma No Degree Degree Degree Degree percentages were 71% and 77%, respectively. Diploma ƒ Among those to whom these plans were available, 100% participation rates were higher for individuals with higher education levels. In the private sector, 80% 77% 77% participation rates ranged from 72% among 72% 71% 70% full-time year-round workers with less than a high school diploma to 89% among those with 60% 53% 50% advanced degrees. Participation rates ranged 47% 49% 44% from 89% to 96% in the public sector. 40% 40% ƒ Within the private sector, larger employers were

Percentage Covered Percentage 25% more likely to offer retirement plans than smaller 20% employers.

0% ALSO IMPORTANT: Private Federal, State, and Local Governments ƒ In 2018, the percentage of part-time workers (those who worked at least 20 hours a week for at least Participation Rates in Employer-Provided Retirement Plans Among Eligible Full-Time 26 weeks but less than full time year-round) who Year-Round Workers Age 25 and Older, by Sector and Education Level, 2018 were offered retirement plans ranged from 15% for those without a high school diploma and 30% for Less than a High High School Some College, Associate Bachelor’s Advanced Sector School Diploma Diploma No Degree Degree Degree Degree high school graduates to 41% for bachelor’s degree recipients and 47% for those with an advanced Private 72% 80% 83% 84% 88% 89% degree. (U.S. Census Bureau, 2019 Annual Social and Federal, State, and Local 89% 91% 93% 94% 94% 96% Economic Supplement; calculations by the authors) Governments ƒ The payout of defined contribution plans depends on the amount accumulated in a personal account. Over time, these plans have become more common than Employer-Provided Retirement Plan Coverage Among Full-Time Year-Round Workers defined benefits plans, which provide a predetermined Age 25 and Older in the Private Sector, by Employer Size and Education Level, 2018 income level each year after retirement. ƒ Number of Less than a High High School Some College, Associate Bachelor’s Advanced Low earnings levels, which are more common Employees School Diploma Diploma No Degree Degree Degree Degree among individuals with lower education levels, may Less than 100 13% 24% 28% 30% 33% 37% explain some of the difference in participation rates 100 to 999 32% 45% 49% 50% 51% 52% in employer-provided retirement plans that require 1000 or More 44% 55% 55% 59% 57% 56% workers to contribute a portion of their wages.

SOURCES: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2019; calculations by the authors.

31 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. Health Insurance Among both full-time and part-time workers, those with higher levels of educational attainment are more likely than others to be covered by employer-provided health insurance.

FIGURE 2.14A ƒ Employer-Provided Health Insurance Coverage Among Full-Time In 2018, 52% of high school graduates age 25 and Year-Round Workers Age 25 and Older, by Education Level, 1998, older working full time year-round were covered 2008, and 2018 by employer-provided health insurance, compared with 64% of those with a bachelor’s degree and 1998 2008 2018 70% of those with advanced degrees. 100% ƒ Employer-provided health insurance coverage has declined over the past 20 years for both full- 77% 80% 75% 75% time and part-time workers. Between 1998 and 70% 71% 70% 67% 67% 2018, health insurance coverage declined by 7 to 63% 63% 64% 59% 59% 59% 11 percentage points for individuals with at least 60% 52% some college education working full time year- 46% round. The decline was 11 to 13 percentage points 40% 38% for individuals with a high school diploma or less. 33% ƒ Percentage Covered In 1998, 57% of advanced degree holders, 47%

20% of bachelor’s degree holders, and 33% of high school graduates working part time were covered by employer-provided health insurance. By 2018, 0% Less than a High School Some College, Associate Bachelor’s Advanced those percentages had declined to 43%, 37%, and High School Diploma No Degree Degree Degree Degree 27%, respectively. Diploma

ALSO IMPORTANT: FIGURE 2.14B ƒ Employer-Provided Health Insurance Coverage Among Part-Time In 2017, when 10% of adults age 18 and older were Workers Age 25 and Older, by Education Level, 1998, 2008, not covered by health insurance at any time during and 2018 the year, only 5% of those with a bachelor’s degree or higher were not covered. This was the case for 8% 1998 2008 2018 of those with associate degrees, 10% of those with 100% some college but no degree, and 12% of high school graduates. (U.S. Census Bureau, Health Insurance Coverage Status and Type of Coverage by Selected 80% Characteristics, 2017, Table HI01) ƒ In 2017, when 36% of adults age 18 and older were 60% 57% covered by government health care plans, 26% of 50% 47% adults with a bachelor’s degree or higher, 33% of 43% 39% 40% those with an associate degree, 36% of those with 40% 38%37% 37% 33% 33% some college but no degree, and 43% of high school 31% 30% 31%

Percentage Covered 27% 24% graduates had government coverage. (U.S. Census 19% 20% 17% Bureau, Health Insurance Coverage Status and Type of Coverage by Selected Characteristics, 2017, Table HI01) 0% Less than a High School Some College, Associate Bachelor’s Advanced High School Diploma No Degree Degree Degree Degree Diploma

NOTE: Part-time workers are those who worked at least 20 hours a week for at least 26 weeks during the year, but did not work full time year-round. SOURCES: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 1999, 2009, and 2019; calculations by the authors.

32 EDUCATION PAYS 2019 Part 2: Individual and Societal Benefits Social Mobility The percentage of students who end up in the top two income quintiles as adults is strongly correlated with the selectivity of the college they attend. However, within each college selectivity level, this percentage is highest for those from more affluent backgrounds.

FIGURE 2.15A Percentage of Children in Top Two Income Quintiles as Adults, by Parents’ Income Quintile and Children’s College Tier: Children Born in 1980 to 1982 Fourth Quintile Top Quintile 76%

80% 74% 73% 72% 71% 70% 68% 68% 66% 65% 63% 62%

60% 57% 53% 52% 49% 49% 49% 47% 46% 46% 43% 43% 42% 39% 38% 37% 40% 35%

20% 21% 21% 23% 41% 28% 41% 24% 42% 26% 15% 15% 15% 53% 24% 25% 52% 14% 12%12% 32% 53% 32% 55% 57% 62% 43% 29% 19% 46% 33% 18% 17% 0% 2-Year 2-Year 2-Year 2-Year 2-Year Selective Selective Selective Selective Selective For-Profit For-Profit For-Profit For-Profit For-Profit Nonselective Nonselective Nonselective Nonselective Nonselective Most Selective Most Selective Most Selective Most Selective Most Selective Highly Selective Highly Selective Highly Selective Highly Selective Highly Selective

Bottom Quintile Second Quintile Third Quintile Fourth Quintile Top Quintile Parents’ Income Quintile and Children’s College Tier

NOTE: Incomes of adult children were as of 2014 and measured in 2015 dollars.

FIGURE 2.15B ƒ Distribution of College Enrollment by Parents’ Income Quintile, Among those who attended the most selective Children Born in 1980 to 1982 colleges, 68% of children from the lowest parent income quintile were in the top two income 100% 7% 4% quintiles as adults, compared with 72% from the 18% 7% middle and 76% from the highest income quintiles. 27% 11% Never Attended 36% 9% ƒ 80% Children from lower-income backgrounds were 46% Other Enrollment 18% less likely to attend more selective institutions. 19% Children whose parents were in the top 1% of the For-Profit 22% income distribution were nearly 50 times more 60% 35% 2-Year likely to attend the most selective institutions as 25% 23% those whose parents were in the bottom 20%. Nonselective 25% 40% 21% 39% 18% Selective ALSO IMPORTANT: 18% ƒ Overall, the percentage of children who attend any 29% Highly Selective 20% 14% college that end up in the top two income quintiles 21% 12% 24% Most Selective as adults range from 36% and 43% in the bottom two 14% 9% parent income quintiles to 55% and 62% for the top 6% 7% 0% two income quintiles. Bottom Second Third Fourth To p Top 1% ƒ Within each college selectivity tier, rates of upward Parents’ Income Quintile mobility for students from the lowest income quintile differ substantially across colleges with similar NOTES: Other enrollment includes children who attended colleges with fewer than 100 students, those who first enrolled between the ages of 23 and 28, and those who attended less-than-2-year earnings outcomes. This is driven by the fact that institutions. College tiers are defined using Barron’s selectivity categories for 4-year institutions. access for low-income students varies significantly The 2-year category includes both public and private non-profit schools and for-profit includes across colleges. (Chetty et al., 2017) both 2-year and 4-year institutions. ƒ These data do not take into account whether or not a SOURCES: Opportunity Insights, Mobility Report Cards: The Role of Colleges in Intergenerational Mobility, Tables 6 and 8; calculations by the authors. student earned a degree. Completion rates are higher at more selective colleges.

33 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. Poverty For all household types, the poverty rate falls as the level of education increases. The 2018 poverty rate for individuals with an associate degree was 7%, compared with 13% for high school graduates with no college experience.

FIGURE 2.16A ƒ Percentage of Individuals Age 25 and Older Living in Households Within each education level, individuals living in in Poverty, by Household Type and Education Level, 2018 households headed by unmarried females with children under 18 have much higher poverty rates Less than a High School Some College, Associate Bachelor’s than those living in other household types. For High School Diploma No Degree Degree Degree or Diploma Higher example, the 2018 poverty rate for individuals with some college but no degree was 29% for those 60% living in households headed by unmarried females with children, compared with 9% overall for this 47% education group.

40% ƒ 35% In 2018, 69% of all children under age 18 lived with both parents. Of children under 18, 39% of those 29% 26% below 100% poverty thresholds lived with both

Poverty Rate 20% 20% parents, compared with 76% of those above 100% 20% 13% poverty thresholds. 11% 9% 9% ƒ 7% The percentage of children under age 18 who 4% 4% 4% 2% lived with both parents ranged from 55% for those 0% Married Couples with Female Householders with All Households whose parents did not graduate from high school Related Children Related Children and 58% of those whose parents had a high Under 18 Under 18 school diploma to 91% of those whose parents SOURCES: U.S. Census Bureau, Current Population Survey, Annual Social and Economic had an advanced degree. Supplement, 2019; calculations by the authors.

FIGURE 2.16B ALSO IMPORTANT: Living Arrangements of Children Under 18 Years of Age, by Poverty ƒ Status and Highest Education of Either Parent, 2018 In 2018, 5% of all adults and 15% of adults below the poverty threshold lived in households headed by Living with Both Living with Living with Fathers Only unmarried females with children. (U.S. Census Bureau, Parents Mothers Only or Living with Neither Parent Current Population Survey, 2019 Annual Social and 3% 2% Economic Supplement; calculations by the authors) 100% 9% 7% 6% 7% 5% ƒ 14% 8% The official poverty threshold varies with family size, 13% number of children under 18, and senior citizen status. 17% 80% 22% 30% In 2018, the poverty threshold was $13,064 for a single 39% 35% person under age 65, $20,231 for a family of 3 with 2 children, and $25,465 for a family of 4 with 2 children. 46% 60% (U.S. Census Bureau, Poverty Thresholds, 2018) ƒ The poverty threshold is the official measure of 91% 84% poverty and is slightly different from the poverty 40% 76% guidelines used to determine eligibility for public 69% 65% programs. In 2018, the poverty guideline for families 55% 58% of 4 issued by the Department of Health and Human

Percentage of Children Under 18 20% 39% Services was $25,100. (U.S. Department of Health and Human Services, 2018)

0% All Below 100% of Less than High Some Bachelor’s Advanced Children 100% Poverty a High School College or Degree Degree Poverty and School Diploma Associate Above Diploma Degree Poverty Status Highest Education Level of Either Parent

NOTES: In 2018, 4% of children under 18 did not live with either parent. Percentages may not sum to 100 because of rounding. SOURCE: U.S. Census Bureau, America’s Families and Living Arrangements, 2018, Table C-3.

34 EDUCATION PAYS 2019 Part 2: Individual and Societal Benefits Public Assistance Programs Individuals with higher levels of education are less likely to live in households receiving public assistance.

ƒ Medicaid provides health insurance to many low-income families ALSO IMPORTANT: and other eligible individuals. The National School Lunch Program ƒ provides free and reduced-price lunches to eligible school The participation rates for Medicaid, SNAP, and the free and children. The Supplemental Nutrition Assistance Program (SNAP) reduced-price lunch program were higher in 2018 than in 2008. For subsidizes food purchases for eligible low-income households. example, SNAP participation rose from 8% in 2008 to 12% in 2018 Housing assistance includes public housing or rent subsidies for for high school graduates, from 4% to 7% for individuals with an eligible low-income households. associate degree, and from 1% to 3% for those with a bachelor’s ƒ degree or higher. (Baum, Ma, & Payea, 2010) In 2018, 7% of individuals age 25 and older with associate ƒ degrees lived in households that benefited from SNAP, compared In fiscal year 2018, 39.8 million individuals in 19.8 million households with 12% of those with only a high school diploma. received an average of $126 ($254 per household) per month in ƒ SNAP benefits. (U.S. Department of Agriculture Food and Nutrition In 2018, 28% of adult high school graduates and 46% of those Service) without a high school diploma lived in households that received ƒ In 2016-17, 26.1 million children—52% of all those enrolled in U.S. Medicaid coverage. Participation rates were 22% for those with public schools—were eligible for free and reduced-price lunches. some college but no degree, 19% for those with an associate (NCES, Digest of Education Statistics 2018, Table 204.10) degree, and 10% for those with at least a bachelor’s degree. ƒ ƒ Research suggests that access to safety net programs as children In 2018, 4% of adult high school graduates and 9% of those improved individuals’ health and economic outcomes as adults without a high school diploma lived in households that received (Hoynes, Schanzenbach, & Almond, 2016). housing assistance. Participation rates were 3% for those with some college but no degree, 3% for those with an associate degree, and 1% for those with at least a bachelor’s degree.

FIGURE 2.17 Percentage of Individuals Age 25 and Older Living in Households That Participated in Various Public Assistance Programs, by Education Level, 2018

Less than a High School Diploma High School Diploma Some College, No Degree Associate Degree Bachelor’s Degree or Higher

50% 46%

40%

30% 28%

24% 23% 22%

20% 19% Participation Rate Participation

13% 12% 11% 10% 10% 10% 9% 9% 7% 4% 4% 3% 3% 3% 1% 0% Medicaid School Lunch SNAP Housing Assistance

SOURCES: U.S. Census Bureau, Current Population Survey, 2019 Annual Social and Economic Supplement; calculations by the authors.

35 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. Smoking Smoking rates among college graduates have been significantly lower than smoking rates among other adults since information about the risks of smoking became public.

FIGURE 2.18A ƒ Smoking Rates Among Individuals Age 25 and Older, by Across all education levels, smoking rates in the Education Level, 1940 to 2017 United States increased in the 1940s, peaked in the late 1950s, and began a steady decline in the Less than a High School Some College Bachelor’s 1960s after the U.S. Surgeon General released High School Diploma or Associate Degree or Diploma Degree Higher the first report on smoking and health in 1964. Smoking rates among college-educated adults 50% declined much more rapidly than smoking rates among other adults. ƒ 40% College graduates were as likely as other adults to smoke before the medical consensus on the dangers of smoking became clear. By 1970, when

30% information was widespread and clear public warnings were mandatory, the smoking rate among college graduates had declined to 37%,

20% while 44% of high school graduates smoked. Smoking Rate In 2017, smoking rates were 6% for college graduates and 23% for high school graduates. ƒ 10% Within each education level, males are more likely to smoke than females. For example, 24% of males with a high school diploma smoked in 2017, 0% compared with 19% of females. Among those with 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2017 at least a bachelor’s degree, 7% of males and 5% of females smoked. NOTE: Data for 1999 through 2017 are three-year moving averages. SOURCES: de Walque, 2004; National Center for Health Statistics (NCHS), Health, United States, 2018, Table 18; calculations by the authors. ALSO IMPORTANT: ƒ FIGURE 2.18B Statistical analysis suggests that higher levels of Smoking Rates Among Individuals Age 25 and Older, by Gender education are not just correlated with lower smoking and Education Level, 2017 rates but also cause declines in smoking. (de Walque, 2004; Grimard & Parent, 2007; Rosenbaum, 2012) Male Female ƒ 30% In their analysis of the positive relationship between 30% education and health outcomes, Cutler and Lleras- Muney (2010) find that income, health insurance, and family background account for about 30% of the 25% 24% differences. Knowledge and measures of cognitive ability explain an additional 30% of the differences in 20% 20% 19% behaviors, with social networks explaining another 18% 17% 17% 10%. The authors find that much of the difference seems to be driven by the fact that education raises 15% 13% cognition, which in turn improves behavior. Smoking Rate 10% 7% 5% 5%

0% Less than a High School Some College Bachelor’s Total High School Diploma or Associate Degree Diploma Degree

SOURCE: NCHS, Health, United States, 2018, Table 18.

36 EDUCATION PAYS 2019 Part 2: Individual and Societal Benefits Exercise Among adults age 25 to 34, 69% of individuals with at least a bachelor’s degree and 47% of high school graduates reported exercising vigorously at least once a week in 2018.

FIGURE 2.19A ƒ Exercise Rates Among Individuals Age 25 and Older, by Age and Among 45- to 54-year-olds, 61% of individuals Education Level, 2018 with at least a bachelor’s degree and 39% of high school graduates reported exercising vigorously Vigorous Light/Moderate at least once a week in 2018. Less than a High School Diploma ƒ 37% 19% Within each education level, older individuals are High School Diploma 47% 22% less likely to exercise than younger individuals. Some College, No Degree 55% 22%

25 to 34 25 to However, individuals age 65 and older with at Associate Degree 57% 21% least a bachelor’s degree report similar rates of Bachelor’s Degree or Higher 69% 17% vigorous exercise as 25- to 34-year-olds without Less than a High School Diploma 35% 16% a high school diploma. High School Diploma 42% 20% ƒ Some College, No Degree 49% 24% In 2018, 65% of individuals with at least a bachelor’s 35 to 44 35 to Associate Degree 53% 18% degree and 43% of high school graduates reported Bachelor’s Degree or Higher 66% 18% meeting the federal guidelines for physical activity of at least 2½ hours a week of moderate or 1¼ hours Less than a High School Diploma 30% 21% of intensive aerobic activity. High School Diploma 39% 24% Some College, No Degree 44% 27%

45 to 54 45 to Associate Degree 42% 26% ALSO IMPORTANT: Bachelor’s Degree or Higher 61% 22% ƒ Numerous studies investigating the relationship Less than a High School Diploma 24% 25% between education and health support the idea that High School Diploma 33% 29% the skills, attitudes, and thought patterns fostered by Some College, No Degree 34% 31% education lead to more responsible health-related 55 to 64 55 to Associate Degree 42% 28% behaviors. (Mirowsky & Ross, 2003) Bachelor’s Degree or Higher 56% 27% ƒ Improvements in health are associated with each Less than a High School Diploma 14% 26% additional year of schooling, but in contrast to the High School Diploma 20% 32% relationship between education and wages, there Some College, No Degree 27% 34% does not appear to be a “sheepskin” effect with the Associate Degree 29% 33% 65 and Older completion of a degree having a bigger impact than Bachelor’s Degree or Higher 41% 35% just the completion of an additional year of education. 0% 20% 40% 60% 80% 100% (Cutler & Lleras-Muney, 2006)

SOURCES: NCHS, National Health Interview Survey, 2018; calculations by the authors.

FIGURE 2.19B Percentage Distribution of Leisure-Time Aerobic Activity Levels Among Individuals Age 25 and Older, by Education Level, 2018

100% 15% NOTES: “Inactive” is participating in no leisure-time aerobic 27% 80% 35% activity that lasted at least 10 minutes. “Insufficiently Active” 48% 20% is participating in aerobic activities for at least 10 minutes but Inactive less than 150 minutes per week. “Sufficiently Active,” which 60% 22% meets 2008 federal physical activity guidelines, is participating 21% Insufficiently in moderate-intensity leisure-time physical activity at least Active 150 minutes per week, or in vigorous-intensity leisure-time 17% 40% physical activity at least 75 minutes per week, or an equivalent combination. Percentages shown were age-adjusted using the 65% Sufficiently Active projected 2000 U.S. population provided by the U.S. Census 52%

Percentage of Individuals Percentage 20% 43% Bureau as the standard population. Age adjustment was used to 35% allow comparisons among various population subgroups that have different age distributions. Percentages may not sum to 0% 100 because of rounding. Less than a High High School Some College Bachelor’s Degree School Diploma Diploma or Associate or Higher SOURCE: NCHS, Tables of Summary Health Statistics for U.S. Degree Adults: 2018, National Health Interview Survey, Table A-14a.

37 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. Parents and Children: Preschool-Age Children Children of parents with higher levels of educational attainment are more likely than other children to be enrolled in preschool programs.

FIGURE 2.20A ƒ Percentage of 3- to 5-Year-Olds Enrolled in Preschool Programs, by In 2017, 46% of children age 3 to 5 whose parents Parents’ Education Level, 2017 had an advanced degree enrolled in preschool programs, compared with 33% of children whose 50% parents had a high school diploma and 26% of 47% 46% children whose parents did not obtain a high school diploma. 40% ƒ 36% In 2016, children age 3 to 5 whose parents had an 33% 34% advanced degree were 12 percentage points more

30% likely to have been read to 3 or more times in the 26% last week than children whose parents had only a high school diploma (91% versus 79%). ƒ 20% In 2016, children age 3 to 5 whose parents had a bachelor’s degree were 12 percentage points Percentage of Children Percentage more likely to have visited a library at least once in 10% the past month than children whose parents had only a high school diploma (47% versus 35%).

0% Less than a High High School Some College, Associate Bachelor’s Advanced ALSO IMPORTANT: School Diploma Diploma No Degree Degree Degree Degree ƒ Children attending pre-kindergarten programs SOURCE: NCES, Digest of Education Statistics, 2018, Table 202.20. are more ready for school at the end of their pre- kindergarten year than children who do not attend these programs. (Brookings, 2017) FIGURE 2.20B Percentage of 3- to 5-Year-Olds Participating in Activities with a Family Member, by Parents’ Education Level, 2016

Less than a High School Some College Associate Bachelor’s Advanced High School Diploma Degree Degree Degree Diploma

100% 91% 91% 90% 89% 89% 89% 89% 88% 87% 86% 85% 83% 80% 79% 78% 77% 77% 80% 61%

60% 56% 47% 42% 38% 40% 35% 27%

20%

0% Read to by Family Told a Story by Family Did Arts and Crafts Visited a Library Member Three or More Member at Least Once at Least Once in the at Least Once in Times in Past Week in the Past Week Past Week Past Month

SOURCE: NCES, Digest of Education Statistics, 2018, Table 207.10.

38 EDUCATION PAYS 2019 Part 2: Individual and Societal Benefits Parents and Children: School-Age Children Children of parents with higher levels of educational attainment are more likely than other children to engage in a wide variety of educational activities with their family members.

FIGURE 2.21A ƒ Percentage of Kindergartners Through Fifth Graders Participating Among kindergartners to fifth graders whose in Activities with a Family Member in the Past Month, by Parents’ parents’ highest education was a bachelor’s degree, Education Level, 2016 45% had visited a library in the past month. This compares with 37% of children whose parents had Less than a High School Some College Associate Bachelor’s Advanced only a high school diploma and 56% of those whose High School Diploma Degree Degree Degree Diploma parents held an advanced degree. ƒ 100% About one-quarter of children in kindergarten to fifth grade whose parents’ highest education was a high school diploma had visited an art gallery, museum, 80% or historical site in the past month; half of children 66%

61% in this group had attended an event sponsored 56% 56% 60% 55% by a community, religious, or ethnic group. This 50% 47%

45% compares with 37% and 61%, respectively, of 39% 39% 39% 38% 37% 37% 37% children whose parents’ highest level of education 40% 30% 30% 29% 28%

27% was a bachelor’s degree. 24% 23% 22% ƒ 17% Among parents of elementary and secondary school 20% children, just over a quarter of those whose highest education was a high school diploma volunteered 0% Visited a Library Went to a Play, Visited an Art Attended an Event at school; more than half of those with at least a Concert, or Other Gallery, Museum, or Sponsored by a bachelor’s degree volunteered. Live Show Historical Site Community, Religious, or Ethnic Group

SOURCE: NCES, Digest of Education Statistics, 2018, Table 207.20. ALSO IMPORTANT: ƒ Kalil, Ryan, & Corey (2012) find that “highly educated mothers not only spend more time in FIGURE 2.21B Percentage of Elementary and Secondary School Children Whose active child care than less educated mothers, but that they alter the composition of that time to suit Parents Were Involved in School Activities, by Parents’ Education children’s developmental needs more than less Level, 2016 educated mothers.” Less than a High School Some College Associate Bachelor’s Advanced High School Diploma Degree Degree Degree Diploma 95% 93% 100% 93% 90% 89% 87% 84% 83% 82% 81% 78% 78% 76% 76%

80% 73% 70% 70% 65%

60% 54% 54% 45%

40% 35% 27% 25%

20%

0% Attended a Attended a Attended a Volunteered at General School Parent-Teacher Class Event School or PTO/PTA Meeting Conference

SOURCE: NCES, Digest of Education Statistics, 2018, Table 207.40.

39 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends. Civic Involvement The share of adults who perform unpaid volunteer activities increases with education. Among those age 25 and older, the volunteering rate in 2017 ranged from 10% for those without a high school diploma to 52% for those with advanced degrees.

FIGURE 2.22A ƒ Percentage of Individuals Age 25 and Older Who Volunteered, by At each education level, higher percentages of Gender and Education Level, 2017 women than of men volunteered. In 2017, among adults whose highest education was a bachelor’s Less than a High School Some College, Associate Bachelor’s Advanced degree, 47% of women volunteered while 37% of High School Diploma No Degree Degree Degree Degree Diploma men did. The gender gap is 5 percentage points among individuals with a high school diploma 60% 56% (21% for women versus 16% for men).

52% ƒ At each education level, individuals between the 47% 50% 47% ages of 35 and 54 were more likely to volunteer

42% than others. 37% 40% 37% 35% 34%

31% ALSO IMPORTANT: 29%

30% 27% ƒ Volunteers were more likely to donate to charity and

21% to invest in community-building than nonvolunteers. 19%

Volunteering Rate Volunteering 20% (National & Community Service, 2018) 16% ƒ 12% As is the case with most of the indicators included 10%

10% 8% in this report, the correlation seen here should not necessarily be interpreted as causation. Personal characteristics may make people more likely 0% both to pursue higher education and to volunteer. All Female Male However, statistical analysis suggests that the actual increments in volunteer activity attributable to FIGURE 2.22B increased education are similar to those described Percentage of Individuals Age 25 and Older Who Volunteered, by here. Enrolling in college significantly increases Age and Education Level, 2017 the likelihood of volunteering, controlling for Less than a High School Some College, Associate Bachelor’s Advanced other demographic characteristics. (Dee, 2004; High School Diploma No Degree Degree Degree Degree Oreopoulos & Salvanes, 2011) Diploma

60% 57% 52% 50%

50% 47% 44% 43% 37% 37% 40% 37% 34% 34% 33% 32% 31%

30% 28% 26% 21% 19% 18% Volunteering Rate Volunteering 20% 16% 11% 10% 9% 9% 10%

0% 25 to 34 35 to 54 55 to 64 65 and Older

NOTE: Volunteers are defined as individuals who performed unpaid volunteer activities for organizations at any point from September 2016 through September 2017. SOURCES: U.S. Census Bureau, September 2017 Supplement to the Current Population Survey; calculations by the authors.

40 EDUCATION PAYS 2019 Part 2: Individual and Societal Benefits Voting Voting rates are higher among individuals with higher levels of education. In the 2016 presidential election, 73% of 25- to 44-year-old U.S. citizens with at least a bachelor’s degree voted, compared with 41% of high school graduates in the same age group.

FIGURE 2.23A ƒ Voting Rates Among U.S. Citizens, by Age and Education Level, Within each age group and education level, voting 2016 and 2018 rates were higher in the 2016 presidential election than in the 2018 midterm election. 2018 2016 ƒ At all levels of education, voting rates increase Less than a High School Diploma 15% 20% with age. High School Diploma 24% 36% ƒ Between 1964 and 2016, voting rates during

18 to 24 18 to Some College or Associate Degree 39% 50% presidential elections declined across all education Bachelor’s Degree or Higher 50% 60% groups. Declines in voting rates were largest for those without a high school diploma (from 65% in Less than a High School Diploma 16% 24% 1964 to 35% in 2016) and smallest for those with at High School Diploma 30% 41% least a bachelor’s degree (from 88% in 1964 to 76%

25 to 44 25 to Some College or Associate Degree 44% 56% in 2016). Bachelor’s Degree or Higher 62% 73%

ALSO IMPORTANT: Less than a High School Diploma 29% 37% ƒ High School Diploma 48% 57% Voting rates across all age and education groups were higher during the 2018 midterm election than 45 to 64 45 to Some College or Associate Degree 62% 70% during the 2014 midterm election. The increase Bachelor’s Degree or Higher 73% 79% in voting rates during the 2018 midterm election was particularly large among younger age groups. Less than a High School Diploma 38% 47% (U.S. Census Bureau, Voting and Registration in High School Diploma 59% 66% the Election of November 2014 and 2018, Table 5;

65 to 74 65 to Some College or Associate Degree 74% 77% calculations by the authors). Bachelor’s Degree or Higher 79% 83% ƒ Only U.S. citizens are eligible to vote in elections. Voting rates in Figures 2.23A and 2.23B represent Less than a High School Diploma 43% 48% percentages of U.S. citizens who voted. In 2016, High School Diploma 58% 66% 8.7% of the U.S. population ages 18 and older Some College or Associate Degree 72% 75% were noncitizens. (U.S. Census Bureau, Voting and 75 and Older Bachelor’s Degree or Higher 75% 80% Registration in the Election of November 2016, Table 5; calculations by the authors). 0% 20% 40% 60% 80%

SOURCES: U.S. Census Bureau, Voting and Registration in the Election of November 2016 and 2018, Table 5; calculations by the authors.

FIGURE 2.23B Voting Rates Among U.S. Citizens During Presidential Elections, by Education Level, 1964 to 2016

100% 88% 82% 80% 76% Bachelor’s Degree 76% or Higher 65% 63% 60% Some College or 52% Associate Degree

Voting Rate Voting 40% 35% High School Diploma

20% Grades 9 to 11 NOTE: Because citizenship status for 1976 and earlier is not available, voting rates in these years represent percentages of all U.S. age-eligible population who voted. 0% SOURCES: U.S. Census Bureau, Voting and Registration Tables, 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 20162012 1964 to 2016; calculations by the authors.

41 For detailed data behind the graphs and additional information, please visit: research.collegeboard.org/trends.

References

Avery, C., Howell, J., Pender, M., & Sacerdote B. (2019). Policies and Internal Revenue Service. (2017). Statistics of Income Tax Stats, 2017 Payoffs to Addressing America’s College Graduation Deficit. Washington, Tax Year. DC: Brookings Papers on Economic Activity, the Brookings Institution. Kalil, A., Ryan, R., & Corey, M. (2012). Diverging Destinies: Maternal Autor, D. (2010). The Polarization of Job Opportunities in the U.S. Labor Education and the Developmental Gradient in Time with Children. Market: Implications for Employment and Earnings. Washington, DC: Demography, 49(4), 1371–1383. Center for American Progress and the Hamilton Project. Kirkeboen, L. J., Leuven, E., & Mogstad, M. (2016). Field of Study,

Baum, S., Ma, J., & Payea, K. (2010). Education Pays 2010: The Benefits of Earnings, and Self-Selection. Quarterly Journal of Economic, 131(3), Higher Education for Individuals and Society. New York: College Board. 1057–1111. Baum, S., Kurose, C., & Ma, J. (2013). How College Shapes Lives: Mirowsky, J., & Ross, C. E. (2003). Education, Social Status, and Health. Understanding the Issues. New York: College Board. Somerset, NY: Aldine de Gruyter. Brookings Institution. (2017). The Current State of Scientific Knowledge National & Community Service. (2018). Volunteering in America Report. on Pre-Kindergarten Effects. Washington, DC: the Brookings Institution. Research: Overview Statistics. Card, D. (2001). Estimating the Return to Schooling: Progress on Some Oreopoulos, P., & Petronijevic, U. (2013). Making College Worth It: A Persistent Econometric Problems. Econometrica, 69(5), 1127–1160. Review of Research on the Returns to Higher Education (National Bureau Carneiro, P., Heckman, J., & Vytlacil, E. (2011). Estimating Marginal of Economic Research Working Paper No. 19053). Returns to Education. American Economic Review, 101(6), 2754–2781. Oreopoulos, P., & Salvanes, K. (2011). Priceless: The Nonpecuniary Chetty, R., Friedman, J., Saez, E., Turner, N., & Yagan, D. (2017). Mobility Benefits of Schooling. Journal of Economic Perspectives, 25(1), 159–184. Report Cards: The Role of Colleges in Intergenerational Mobility. (National Oreopoulos, P., von Wachter, T., & Heisz, A. (2012). The Short- and Long- Bureau of Economic Research Working Paper No. 23619). Term Career Effects of Graduating in a Recession. American Economic Cutler, D. M., & Lleras-Muney, A. (2006). Education and Health: Evaluating Journal: Applied Economics, 4(1), 1–29. Theories and Evidence (National Bureau of Economic Research Working Organisation for Economic Co-operation and Development (OECD). Paper No. 12352). (2019). Education at a Glance 2019. Paris, France: OECD.

Cutler, D. M., & Lleras-Muney, A. (2010). Understanding Differences in Rosenbaum, J. (2012). Degrees of Health Disparities: Health Status Health Behaviors by Education. Journal of Health Economics, 29(1), 1–28. Disparities Between Young Adults with High School Diplomas, Sub- Dale, S. B., & Krueger, A. B. (2014). Estimating the Effects of College Baccalaureate Degrees, and Baccalaureate Degrees. Health Services Characteristics over the Career Using Administrative Earnings Data. and Outcomes Research Methodology, 12(2–3): 156–168. Journal of Human Resources, 49(2), 323–358. Rouse, C. E. (2005). The labor market consequences of an inadequate Dee, T. S. (2004). Are There Civic Returns to Education? Journal of Public education (Princeton University Working Paper). Economics, 88(9–10), 1697–1720. Shapiro, D., Dundar, A., Huie, F., Wakhungu, P. K., Bhimdiwala, A., & Wilson, Deming, D.J., & Walters, C.R. (2017). The Impacts of Price and Spending S. E. (2018, December). Completing College: A National View of Student Subsidies on U.S. Postsecondary Attainment. Working Paper. Completion Rates – Fall 2012 Cohort (Signature Report No. 16). Herndon, VA: National Student Clearinghouse Research Center. de Walque, D. (2004). Education, Information, and Smoking Decisions: Evidence from Smoking Histories, 1940–2000 (World Bank Policy Shapiro, D., Dundar, A., Huie, F., Wakhungu, P. K., Yuan, X., Nathan, Research Working Paper No. 3362). A. & Hwang, Y. (2019, September). Tracking Transfer: Measures of Effectiveness in Helping Community College Students to Complete Federal Reserve Bank of New York. (2019). The Labor Market for Recent Bachelor’s Degrees (Signature Report No. 13). Herndon, VA: National College Graduates. Student Clearinghouse Research Center. Goldin, C., & Katz, L. F. (2008). The Race Between Education and Wiehe, M. et. al. (2018). Who Pays? A Distributional Analysis of the Tax Technology. Cambridge, MA: Harvard University Press. Systems in All 50 States (6th ed.). Washington, DC: Institute on Taxation Grimard, F., & Parent, D. (2007). Education and Smoking: Were Vietnam and Economic Policy. War Draft Avoiders Also More Likely to Avoid Smoking? Journal of Health Zimmerman, S. D. (2014). The Returns to College Admission for Economics, 26(5), 896–926. Academically Marginal Students. Journal of Labor Economics, 32(4), Goodman, J., Smith, J., & Hurwitz, M. (2015). Access to Four-Year 711–754. Public Colleges and Degree Completion. (National Bureau of Economic Research Working Paper No. 20996). Harmon, C., Oosterbeek, H., & Walker, I. (2003). The Returns to Education: Microeconomics. Journal of Economic Surveys, 17(2), 115–156. Hoekstra, M. (2009). The Effects of Attending the Flagship State University on Earnings: A Discontinuity-Based Approach. The Review of Economics and Statistics, 91(4), 717–724. Hoynes, H., Schanzenbach, D. W., & Almond, D. (2016). Long-Run Impacts of Childhood Access to the Safety Net. American Economic Review of Economics and Statistics, 106(4), 903–934.

42 ABOUT COLLEGE BOARD

College Board is a mission-driven not-for-profit organization that connects students to college success and opportunity. Founded in 1900, College Board was created to expand access to higher education. Today, the membership association is made up of over 6,000 of the world’s leading educational institutions and is dedicated to promoting excellence and equity in education. Each year, College Board helps more than seven million students prepare for a successful transition to college through programs and services in college readiness and college success—including the SAT® and the Advanced Placement Program®. The organization also serves the education community through research and advocacy on behalf of students, educators, and schools. For further information, visit collegeboard.org. TRENDS IN HIGHER EDUCATION

The Trends in Higher Education publications include the annual Trends in College Pricing and Trends in Student Aid reports and the Education Pays series, along with other research reports and topical analysis briefs. These reports are designed to provide a foundation of evidence to strengthen policy discussions and decisions.

The tables supporting all of the graphs in this report, a PDF version of the report, and a PowerPoint file containing individual slides for all of the graphs are available on our website research.collegeboard.org/trends.

Please feel free to cite or reproduce the data in this report for noncommercial purposes with proper attribution.

For inquiries or requesting hard copies, please contact: [email protected]. collegeboard.org trends.collegeboard.org

01469-073 January 2020