The right conclusion for the wrong reasons. Low graduation rates, increasing length of time to degree completion, and the relative unattractiveness of marginal degree programs (nice swipe at Sociology) are symptoms of an a single underlying change. A college education is becoming increasingly more valuable every year. In an increasingly knowledge based society, there is increased returns to being knowledgeable. The earnings gap between BA and HS grads, an admittedly imperfect measure, has more than doubled in a generation. As a consequence nearly twice as many 18 year olds are enrolling. This shift in demand is driving up costs. Also, the increasingly marginal students drop out more often, take longer to finish, and complete relatively weaker degree programs.
One feature that separates US higher education from, say, Europe is that truly bright kids from humble backgrounds have a shot at elite educations (e.g. Obama, Sotomayor). Society benefits from these folks obtaining advanced educations and there have been more and more programs (often private and university run) to subsidize this. But, increased government subsidies, such as Pell grants, will primarily affect much more marginal students. These folks are getting degrees because it is in their own private interest. The magnitude of the positive externality they generate for society is questionable.
The right conclusion for the wrong reasons. Low graduation rates, increasing length of time to degree completion, and the relative unattractiveness of marginal degree programs (nice swipe at Sociology) are symptoms of an a single underlying change. A college education is becoming increasingly more valuable every year. In an increasingly knowledge based society, there is increased returns to being knowledgeable. The earnings gap between BA and HS grads, an admittedly imperfect measure, has more than doubled in a generation. As a consequence nearly twice as many 18 year olds are enrolling. This shift in demand is driving up costs. Also, the increasingly marginal students drop out more often, take longer to finish, and complete relatively weaker degree programs.
ReplyDeleteOne feature that separates US higher education from, say, Europe is that truly bright kids from humble backgrounds have a shot at elite educations (e.g. Obama, Sotomayor). Society benefits from these folks obtaining advanced educations and there have been more and more programs (often private and university run) to subsidize this. But, increased government subsidies, such as Pell grants, will primarily affect much more marginal students. These folks are getting degrees because it is in their own private interest. The magnitude of the positive externality they generate for society is questionable.
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ReplyDeleteDegree Completion