All Posts Tagged With: "post-graduate earnings"

Millennium Foundation says a degree is a great investment, but other studies raise a few caveats

If you have a university degree, you can expect to earn $746,000 more over your working life than someone with only a high school diploma. The information is contained in a study released today by the Canadian Millennium Scholarship Foundation, authored by Joseph Berger and Andrew Parkin. The authors also found that Canadians with only a high school diploma are two and a half times more likely to be unemployed than a university graduate. College graduates enjoy higher earnings than those with only a high school education, but the earning gap is not as wide and their lifetime payoff is only about half that of university graduates.

Bergin and Parker say they wrote this report in in order to counter “a series of recent suggestions that somehow we have too many [post-secondary] students in Canada, not too few.” They write that “the evidence about the positive returns to post-secondary education is so well-known that it seems unnecessary to review it again.” There’s pretty much no refuting that, if you take the income levels of all those with a university education and compare it to the incomes of all those with only high school, university looks is one heck of a good investment. College similarly looks like a good investment, but university appears to be a much better one. A few years ago, I opened our annual Rankings issue with an article entitled “The Best Investment Money Can Buy.” I estimated, based on a less thorough analysis of Statscan data than Berger and Parkin offer, that the return on a university degree was about $1 million dollars in extra lifetime earnings.

I still hold to the view that university offer serious economic benefits to students and society — but I have some caveats. Education is the fount of progress: social, scientific and economic. A more skilled society will be a more prosperous and successful society. But the more I look at our higher education system, the more frequently I see disconnects between the true statement “our society needs more educated people” and the not necessarily equivalent statement that “our society needs more people with university degrees.” The latter should equal the former, but unfortunately that’s not always the case. There’s lots of evidence that an increasing number of kids are simply being pushed through the system: they may get a university degree (and before that, a high school diploma) without having learned anywhere near as much as the credential suggests they should have. A few weeks ago, a chemistry professor told me about how some students in his third-year and fourth-year classes — students who are majoring in chemistry — never learned the most basic elements of the first-year material. He’s not sure how they made it in to upper-year courses; they’re not educated enough to be called scientists. But they’re going to get a B.Sc. What exactly is their degree worth? Somewhat less than the ideal.

A number of commentators, such as professors James Cote and Anton Allahar, authors of this book (and a related blog) have said that we are lowering standards in order to raise enrolment, devaluing higher education in the process. I’ve got a lot of sympathy for Cote and Allahar’s argument that we are putting too much emphasis on getting more people into higher education, and too little emphasis on what they do once they get there — what they actually learn. Cote and Allahar similarly point to a focus on credentials over learning in some high school systems — which deal with weak students by shoving them through the system regardless of actual performance or learning, raising everyone’s grades, raising graduation rates and giving the illusion of educational progress. More knowledge/skill/education are good things, for the individual and for our society and economy. However, we can’t just assume that more schooling, of whatever type, in whatever field and of whatever quality, equals education/learning/skills. Our system should aim to make those linkages — and this is where Parkin/Berger and Cote/Allahar surely agree. We can’t automatically assume that more people with credentials (whether that is a high school diploma or a B.A.) equals more people with knowledge and skills that lead to higher returns to themselves and to society.