THE VALUE OF A DEGREE

Institutional Research & EffectivenessAugust 2011

Value to the Student

H.S. Diploma Bachelor’s Degree Master’s Degree

Median weekly earnings $767 $1,038 $1,272

Average Lifetime earnings $1,767,025 $3,380,060 $3,837,239

Percent Increase to earnings since 1983

13% 34% 55%

Current unemployment rate

10.3% 5.4% 4.0%

For the student, pursuing higher education can translate into higher earnings, lower unemployment rates, and the ability to stay

competitive in skill driven economy.

Increased Earnings

Less than HS Diploma

HS Diploma

Some College, No Degree

Associate Degree

Bachelor's Degree

Master's Degree

Professional Degree

Doctoral Degree

$0 $500 $1,000 $1,500 $2,000

$444

$626

$712

$767

$1,038

$1,272

$1,610

$1,550

Median Weekly Earnings (2010)- Persons 25 and Older

Source: Bureau of Labor Statistics, Current Population Survey 2010

Those with a bachelor’s degree earn, on average, 66% more than those with a high school diploma. Those with a master’s degree earn an additional 23% over those with bachelor’s degrees.

Increased Lifetime Earnings

Less than HS DiplomaHS Diploma

Some College, No Degree

Associate's Degree

Bachelor's Degree

Master's Degree

Professional Degree

Doctoral Degree$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

0.00

0.50

1.00

1.50

2.00

2.50

3.00

0.68

1.00

1.27 1.28

1.91

2.17

2.63

2.28

$1,767,025

$2,254,765

$3,380,060

$3,837,239

Estim

ated

Ave

rage

Life

time

Earn

ings Earnings Relative to H

S Diplom

a

Source: Carnevale, A.P., Strohl, J. & Melton, M. (2010). Help Wanted: Projections of jobs and Education Requirements through 2018. Retrieved from the Center on Education and the Workforce website: http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/fullreport.pdf

Over a lifetime, those with a bachelor’s degree or higher will earn, on average, twice as much as those with a high school diploma. That equates to earning over $1.5 million more in a lifetime.

Earning Increases Since 1983

Less than HS Diploma

HS Diploma Associate's Degree

Bachelor's Degree

Graduate Degree

-10%

0%

10%

20%

30%

40%

50%

60%

-2%

13% 15%

34%

55%

% Earnings Increase Workers Aged 25-54 yrs.

Source: Carnevale, A.P., Strohl, J. & Melton, M. (2010). Help Wanted: Projections of jobs and Education Requirements through 2018. Retrieved from the Center on Education and the Workforce website: http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/fullreport.pdf

Wages have increased at significantly higher rate for those with bachelor’s and master’s degrees than those with associate’s degrees and high school diplomas.

Earnings Boost by Major

Psychology and Social Work

Education

Humanities and Liberal Arts

Social Science

Business

Computers and Mathmatics

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

$60,000

$57,000

$65,000

$85,000

$80,000

$89,000

$42,000

$42,000

$47,000

$55,000

$60,000

$70,000

Median Yearly Earnings - Bachelor's Degree Median Yearly Earnings - Graduate Degree

Source: Carnevale, A.P., Strohl, J. & Melton, M. (2011). What’s it Worth? The Economic Value of College Majors. Retrieved from the Center on Education and the Workforce website: http://cew.georgetown.edu/whatsitworth/.

(Full-time, full-year workers)

Depending on your field, obtaining a master’s degree could translate into $15-30k more per year.

Earnings Boost by Major

Social Science Humanities and Liberal Arts

Psychology and Social Work

Business Education0%

10%

20%

30%

40%

50%

60% 57%

48%43%

40%

33%

% Earnings Boost from a Graduate Degree

Source: Carnevale, A.P., Strohl, J. & Melton, M. (2011). What’s it Worth? The Economic Value of College Majors. Retrieved from the Center on Education and the Workforce website: http://cew.georgetown.edu/whatsitworth/.

Compared to other fields, those with bachelor’s degrees in the social sciences see, on average, the largest increases to their wages when continue on to earn a master’s degree.

Lower Unemployment Rates

Less than HS Diploma

HS Diploma

Some College, No Degree

Associate Degree

Bachelor's Degree

Master's Degree

Professional Degree

Doctoral Degree

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%

14.9%

10.3%

9.2%

7.0%

5.4%

4.0%

2.4%

1.9%

Unemployment Rate (2010) – Persons 25 and Older

Source: Bureau of Labor Statistics, Current Population Survey 2010

The Great Recession has effected all in the workforce but those with college degrees are fairing much better than those without.

Lower Unemployment Rates

Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-110.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Less than HS Diploma HS Diploma, No CollegeAssociate Degree or Some College Bachelor's Degree or Higher

Source: Bureau of Labor Statistics, Current Population Survey 2010

Historically, the more education one obtains the lower their rate of unemployment.

Stay Competitive

Jobs

re-quiring some col-lege or

bet-ter; 63%

37%

Educational Demand of Jobs by 2018

Require a bachelor's degree or

better; 72%

% of Jobs Requiring Some College by 2018

Source: Carnevale, A.P., Strohl, J. & Melton, M. (2010). Help Wanted: Projections of jobs and Education Requirements through 2018. Retrieved from the Center on Education and the Workforce website: http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/fullreport.pdf

An educational demand forecast, from the Center on Education and Workforce at Georgetown University, estimates by 2018 63% of new and replacement jobs will require some college or better. Of that 63%, 72% will require a bachelor’s degree or better.

Value to the Community

H.S. Diploma Associate’s Degree Bachelor’s Degree or Higher

Receiving Food Stamps 6% 4% 1%

Voted in last presidential election

51% 65% 73%

% Volunteering in 2011 18% 29% 42%

Rates of obesity 34% 31% 20%

Higher levels of education within a community can translate into a healthier citizenry that participates in civic duties, such as voting and volunteerism, and is less likely to need the assistance of government programs.

Also, the increased earnings of bachelor’s and master’s degree holders has a positive impact on the economies of communities including increased revenue generation.

Public Assistance

Medicaid School Lunch Food Stamps0%

5%

10%

15%

20%

25%

30%

35%

40% 38%

18% 18%21%

8% 8%

16%

7% 6%

14%

5% 4%7%

1% 1%

% of Individuals Age 25+ Living in Households that Participated in a Public Assistance Program by Education Level, 2008

Less than HS Diploma HS Diploma Some College, No DegreeAssociate Degree Bachelor's Degree or Higher

Source: Baum, S., Ma, J., & Payea, K.(2010). Education Pays 2010: The Benefits of Higher Education for Individuals and Society retrieved from website: http://trends.collegeboard.org/education_pays

Those with bachelor’s degrees or higher are considerably less likely to require public assistance than those with a two-year degrees or less.

Public Assistance

HS Diploma

FCS A

AS

FCS A

A/AS

FCS B

achelor's

SUS B

achelor's

SUS M

aster's

0%1%2%3%4%5%6%7%8%9%

8%

5%4% 4%

2%1%

% Receiving Public Assistance - Florida

Source: The Florida College System (2011). Benefits of Education (Edition 2011-02). Retrieved from http://www.fldoe.org/cc/OSAS/Evaluations/pdf/Zoom2011-02.pdf.

Florida’s population mirrors the national trend in public assistance needs by educational attainment.

2008-09 completers – FETPIP 2009 data

Increased Revenues

White Asian Black Hispanic$0

$50,000

$100,000

$150,000

$200,000

$250,000

$192,000$181,000

$144,000$165,000$167,000 $171,000

$128,000$148,000

Increased tax payments associated with increasing educational attainment from high school dropout to college graduate.

Men Women

An increase in educational attainment is associated with a higher likelihood of employment and higher wages and thus also an increase in tax payments.

Source: Carroll, Stephen J. & Erkut, E. (2009). Benefits to Taxpayers from Increases in Students’ Educational Attainment [Monograph]. Rand Corporation series – MG-686-WFHF.

Voting

Bachelor's

Degree or H

igher

Some Colle

ge or A

ssocia

te's Degre

e

HS Diploma

Less

than

HS Diploma

0%20%40%60%80%

100%73% 65%

51%34%

60%47% 38%

23%

Presidential Election Year (2008) Congressional Election Year (2006)

% o

f Pop

ulati

on

Source: U.S. Census Bureau , Statistical Abstract (2011). Table 416 - Voting-Age Population, Percent Reporting Registered, and Voted. Retrieved from http://www.census.gov/compendia/statab/2011/tables/11s0416.pdf

Individuals with higher levels of education are more to engage in civic duties such as voting.

Volunteerism

Bachelor's

Degree or H

igher

Some Colle

ge or A

ssocia

te's Degre

e

HS Diploma

Less

than

HS Diploma

0%20%40%60%80%

100%

42%29%

18%9%

% o

f Pop

ulati

on

Source: US Dept of Labor, US Bureau of Labor Statistics (2011). Volunteering in the United States – 2010 (Publication No. USDL-11-0084). Retrieved from http://www.bls.gov/news.release/pdf/volun.pdf

Individuals with higher levels of education engage in volunteer activities at a higher rate than those with less education.

Healthier Communities

Exercise Rates, Individuals Aged 25-34

Bachelor's Degree or

Higher

Associate's Degree

HS Diploma0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

63%45% 37%

Vigorous ExerciseLight/Moderate Exercise

Obesity Rates, Individuals Aged 25-34

Bachelor's

Degree or Higher

Some College or A

ssocia

te's Degree

High School D

iploma0%5%

10%15%20%25%30%35%40%

20%

31% 34%

Source: Baum, S., Ma, J., & Payea, K.(2010). Education Pays 2010: The Benefits of Higher Education for Individuals and Society retrieved from website: http://trends.collegeboard.org/education_pays

Those with bachelor’s degrees and higher are more likely to exercise and less likely to be obese.

Educational Supply & Demand“Demand for workers with college education will outpace supply to the tune of 300,000 per year. By 2018, the postsecondary system will have produced 3 million fewer college graduates than demanded by the labor market.…degrees conferred would have to increase by about 10% a year to eliminate the shortfall…”

Source: Carnevale, A.P., Strohl, J. & Melton, M. (2010). Help Wanted: Projections of jobs and Education Requirements through 2018. Retrieved from the Center on Education and the Workforce website: http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/fullreport.pdf (p.16, 18)

Sarasota, Manatee, and Charlotte Counties mirror the distribution of educational attainment of Florida and the nation. Therefore, locally we face the same educational attainment gap as the rest of the state and the country.

Educational Attainment

UNITED STATES FLORIDA CHARLOTTE COUNTY

MANATEE COUNTY

SARASOTA COUNTY

LESS THAN HS DIPLOMA

0.15 0.15 0.12 0.13 0.1

HS DIPLOMA 0.29 0.31 0.36 0.32 0.31

SOME COLLEGE, NO DEGREE

0.2 0.2 0.23 0.21 0.22

ASSOCIATE'S DEGREE

0.08 0.08 0.08 0.08 0.08

BACHELOR'S DEGREE

0.18 0.17 0.13 0.16 0.18

MASTER'S DE-GREE

0.07 0.06 0.06 0.07 0.07

PROF OR DOC-TORAL DEGREE

0.03 0.03 0.02 0.03 0.04

10%30%50%70%90%

Perc

ent o

f Pop

ulati

on 2

5 YR

S +

Source: US Census, American Community Survey, 2009

Educational Attainment

UNITED STATES FLORIDA CHARLOTTE COUNTY

MANATEE COUNTY

SARASOTA COUNTY

ASSOCIATE'S DEGREE

0.21 0.25 0.28 0.24 0.21

BACHELOR'S DEGREE

0.5 0.49 0.45 0.48 0.49

MASTER'S DE-GREE

0.2 0.17 0.2 0.19 0.2

PROF OR DOC-TORAL DEGREE

0.09 0.09 0.07 0.09 0.1

10%

30%

50%

70%

90%Pe

rcen

t of D

egre

ed P

opul

ation

25

YRS

+

Source: US Census, American Community Survey, 2009

ReferencesBaum, S., Ma, J., & Payea, K.(2010). Education Pays 2010: The Benefits of Higher Education for Individuals

and Society retrieved from website: http://trends.collegeboard.org/education_pays

Carnevale, A.P., Strohl, J. & Melton, M. (2010). Help Wanted: Projections of jobs and Education Requirements through 2018. Retrieved from the Center on Education and the Workforce website: http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/fullreport.pdf

Carnevale, A.P., Strohl, J. & Melton, M. (2011). What’s it Worth? The Economic Value of College Majors.Retrieved from the Center on Education and the Workforce website:http://cew.georgetown.edu/whatsitworth/.

Carroll, Stephen J. & Erkut, E. (2009). Benefits to Taxpayers from Increases in Students’ EducationalAttainment [Monograph]. Rand Corporation series – MG-686-WFHF.

The Florida College System (2011). Benefits of Education (Edition 2011-02). Retrieved from http://www.fldoe.org/cc/OSAS/Evaluations/pdf/Zoom2011-02.pdf.

References

U.S. Census Bureau, 2005-2009 American Community Survey 5-Yr Estimates (2009). Retrieved from http://factfinder.census.gov/servlet/DatasetMainPageServlet?_program=ACS&_submenuId=&_lang en&_ds_name=ACS_2009_5YR_G00_&ts=

U.S. Census Bureau , Statistical Abstract (2011). Table 416 - Voting-Age Population, Percent ReportingRegistered, and Voted. Retrieved from http

://www.census.gov/compendia/statab/2011/tables/11s0416.pdf

U.S. Department of Labor, Bureau of Labor Statistics. (2010). Current PopulationSurvey, Earnings by education. Retrieved from http://www.bls.gov/webapps/legacy/cpswktab5.htm.

U.S. Department of Labor, Bureau of Labor Statistics. (2010). Current PopulationSurvey, Unemployment. Retrieved from http://www.bls.gov/cps/tables.htm#charemp.

US Dept of Labor, US Bureau of Labor Statistics (2011). Volunteering in the United States – 2010 (Publication No. USDL-11-0084). Retrieved from http://www.bls.gov/news.release/pdf/volun.pdf