New research shows that the value of college degrees nowadays is just half as important as it is before.
Importance of a college degree today
A recent study based on a 20 year period has summed up conclusions regarding degree relevance to financial success. Graduates born in 1990 have an 11% slight advantage salary-wise as compared to undergraduates. This is a significant drop as compared to those born in 1970 which has a 19$ income difference for graduates and undergraduates.
There is an 8% difference of graduate premium in a span of 20 years since 1970
The term “graduate premium” is used as a reference when talking about the financial capacity of a graduate student as compared to those who haven’t finished a degree.
The chairman of the Campaign for Real Education said that some degrees nowadays are getting irrelevant for the demand of today’s industry. Some can even discourage employers instead of impressing them upon employment.
Today’s industry is not that dependent on college degrees which makes finishing college optional for the new generations. A handful of jobs today doesn’t really require much about having college degrees, especially those in the customer services workforce and e-commerce industry.
But the Ministry of Education wants to emphasize the importance of college degrees, not just by career growth but also a personal sense of achievement after years of hard work in college.
As of now, with the introduction of the new generation jobs, there are more diverse options available for both graduate and undergraduate students. This also presents additional data where experts can gather in order to show if there is really indeed a difference in financial success between graduates and undergraduates.
The Higher Education Statistics Agency (HESA) had a study with regards to financial growth for college degree holders, and it says:
There is a significant positive effect in financial stability for those who managed to earn a degree in college. Starting at a young age also provides higher benefits as their career growth expands.
No matter the trend, with job vacancies for undergraduates becoming a norm, having a degree is still a preferable choice. It’s the sense of completion that fuels an individual to be confident and aspire for more in life.