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Trends in Higher Education Series
Education Pays 2013
The Benefits of Higher Education
for Individuals and Society
Sandy Baum
Jennifer Ma
Kathleen Payea
2 EDUCATION PAYS 2013 Part 1: Individual and Societal Benefits
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About the College Board
The College Board is a mission-driven not-for-profit organization that connects
students to college success and opportunity. Founded in 1900, the College
Board was created to expand access to higher education. Today, the membership
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and is dedicated to promoting excellence and equity in education. Each year, the
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The organization also serves the education community through research and
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visit www.collegeboard.org.
Trends in Higher Education
The Trends in Higher Education publications include the Trends in College Pricing,
Trends in Student Aid, and Education Pays series in addition to How College Shapes
Lives: Understanding the Issues and other research reports and topical analysis
briefs published periodically. These reports are designed to provide a foundation of
evidence to strengthen policy discussions and decisions.
In addition to the figures and tables included in this report, more information and
data can be found on the Trends in Higher Education website.
trends.collegeboard.org
About the Authors
Sandy Baum
Research Professor, George Washington University Graduate School of Education
and Human Development and Senior Fellow, the Urban Institute
sbaum@gwu.edu
Jennifer Ma
Independent Consultant for the College Board
jma@collegeboard.org
Kathleen Payea
Policy Analyst, the College Board
kpayea@collegeboard.org
For inquiries or ordering hard copies, please contact: trends@collegeboard.org
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 3
Contents
5 Executive Summary
7 Introduction
10 Part 1: Individual and Societal Benefits of Higher Education
Earnings
11 Education, Earnings, and
Tax Payments
FIGURE 1.1 Median Earnings and Tax Payments by Education Level, 2011
12 Lifetime Earnings FIGURE 1.2 Lifetime Earnings Relative to High School Graduates by Education Level
13 Earnings Premium Relative
to Price of Education
FIGURE 1.3 Cumulative Earnings Net of Loan Repayment for Tuition and Fees, by
Education Level
14 Earnings by Race/Ethnicity,
Gender, and Education Level
FIGURE 1.4 Median Earnings by Race/Ethnicity, Gender, and Education Level, 2009–2011
15 Earnings by Gender and
Education Level
FIGURE 1.5 Median, 25th Percentile, and 75th Percentile Earnings by Gender and
Education Level, 2011
16 Earnings over Time by
Gender and Education Level
FIGURE 1.6 Median Earnings by Gender and Education Level, 1971–2011
17 Earnings Paths FIGURE 1.7A Median Earnings of Full-Time Workers by Age and Education Level, 2009–2011
FIGURE 1.7B Median Earnings of All Workers by Age and Education Level, 2009–2011
Other Economic Benefits
18 Employment FIGURE 1.8A Number Employed, Unemployed, and Not in the Labor Force by Education
Level, 2002, 2007, and 2012
FIGURE 1.8B Labor Force Participation Rates by Age and Education Level, 2012
19 Unemployment FIGURE 1.9A Unemployment Rates by Education Level, 1992-2012
20 Unemployment FIGURE 1.9B Unemployment Rates by Age and Education Level, 2012
FIGURE 1.9C Unemployment Rates by Race/Ethnicity and Education Level, 2012
21 Job Satisfaction FIGURE 1.10A Sense of Learning New Things on the Job by Education Level, 2002, 2006,
and 2010
FIGURE 1.10B Work Satisfaction Rates by Education Level, 1972–2012
22 Social Mobility FIGURE 1.11 Family Income Quintiles by Education and Parents’ Family Income,
2000–2008
23 Pension Plans FIGURE 1.12A Pension Plan Coverage by Education Level, 1991, 2001, and 2011
FIGURE 1.12B Participation Rates in Pension Plans by Education Level, 2011
24 Health Insurance FIGURE 1.13A Health Insurance Coverage of Full-Time Workers by Education Level,
1991, 2001, and 2011
FIGURE 1.13B Health Insurance Coverage of Part-Time Workers by Education Level,
1991, 2001, and 2011
25 Poverty FIGURE 1.14A Poverty Rates by Household Type and Education Level, 2011
FIGURE 1.14B Living Arrangements of Children by Poverty Status and Parents’
Education Level, 2011
26 Public Assistance Programs FIGURE 1.15 Public Assistance Program Participation Rates by Education Level, 2011
Health Benefits
27 Smoking FIGURE 1.16A Smoking Rates by Education Level, 1940–2012
FIGURE 1.16B Smoking Histories by Education Level, 2012
28 Exercise FIGURE 1.17A Exercise Rates by Age and Education Level, 2012
FIGURE 1.17B Participation in Aerobic Activities by Education Level, 2011
29 Obesity FIGURE 1.18A Adult Obesity Rates by Gender and Education Level, 1988–1994 and 2007–2010
FIGURE 1.18B Childhood Obesity Rates by Gender and Highest Education Level in the
Household, 1988–1994 and 2007–2010
4 EDUCATION PAYS 2013
Contents — Continued
Other Individual and Societal Benefits
30 Parents and Children FIGURE 1.19A Time Mothers Spend on Children, by Employment Status and Education
Level, 2003–2012
FIGURE 1.19B Time Mothers Spend on Children, by Type of Activity, Age of Youngest
Child, Mother’s Employment Status and Education Level, 2003–2012
31 Civic Involvement FIGURE 1.20A Understanding of Political Issues by Education Level, 2012
FIGURE 1.20B Rates of Volunteering by Education Level, 2012
32 Voting FIGURE 1.21A Voting Rates by Age and Education Level, 2010 and 2012
FIGURE 1.21B Voting Patterns by Age and Education Level, 2012
33 Part 2: The Distribution of the Benefits: Who Participates and Succeeds in Higher Education?
College Enrollment
34 College Enrollment
by Income
FIGURE 2.1 Enrollment Rates by Family Income, 1987–2012
35 College Enrollment by
Race/Ethnicity
FIGURE 2.2A Enrollment Rates of Recent High School Graduates by Race/Ethnicity,
1974–2011
FIGURE 2.2B Enrollment Rates of All 18- to 24-Year-Olds by Race/Ethnicity, 1974–2011
36 College Enrollment by
Gender and Age
FIGURE 2.3A Enrollment Rates of Recent High School Graduates and of All 18- to
24-Year-Olds by Gender, 1971–2011
FIGURE 2.3B Enrollment Rates of All 18- to 34-Year-Olds by Age, 1971–2011
37 Stratification Within
Higher Education
FIGURE 2.4A Family Income by Postsecondary Sector, 2011-12
FIGURE 2.4B Postsecondary Sector by Family Income, 2011-12
38 Stratification Within
Higher Education
FIGURE 2.5 Percentage of High School Seniors Academically Undermatched by
Socioeconomic Status, 2004
Educational Attainment
39 Degrees and
Certificates Awarded
FIGURE 2.6A Postsecondary Degrees and Certificates Awarded, 2011-12
FIGURE 2.6B Degrees and Certificates Awarded by Sector, 2011-12
FIGURE 2.6C Number of Certificates Awarded by Type, 2001-02 and 2011-12
40 College Completion FIGURE 2.7A Postsecondary Completion for Students Beginning Postsecondary Study
in 2006
FIGURE 2.7B Postsecondary Completion by Dependency Status and Family Income,
1989-90, 1995-96, and 2003-04
41 Educational Attainment
Over Time
FIGURE 2.8A Educational Attainment over Time, 1940–2012
FIGURE 2.8B Educational Attainment by Age Group, 2002 and 2012
42 Educational Attainment by
Race/Ethicity and Gender
FIGURE 2.9 Educational Attainment by Race/Ethnicity and Gender, 1973–2012
43 Science, Technology,
Engineering, or Mathematics
(STEM) Fields
FIGURE 2.10A Beginning Four-Year College Students Who Earned Bachelor’s Degrees,
Percentage Persisting in the Fields They Entered
FIGURE 2.10B High School Graduates Entering Four-Year Colleges, Graduating in STEM
Fields, and Employed in STEM Fields
FIGURE 2.10C Majors of Bachelor’s Degree Recipients by Occupation, 2009
Geographic Comparisons
44 College Enrollment and
Attainment by State
FIGURE 2.11 Educational Attainment by State
45 International Comparisons:
Public Spending on
Higher Education
FIGURE 2.12 International Expenditures on Higher Education Institutions from Public,
Household, and Other Private Sources, 2010
46 References
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 5
Executive Summary
Education Pays 2013: The Benefits of Higher Education for
Individuals and Society documents differences in the earnings
and employment patterns of U.S. adults with different levels of
education. It also compares health-related behaviors, reliance
on public assistance programs, civic participation, and indicators
of the well-being of the next generation. Financial benefits are
easier to document than nonpecuniary benefits, but the latter
may be as important to students themselves, as well as to the
society in which they participate. Our goal is to call attention to
ways in which both individuals and society as a whole benefit
from increased levels of education.
Our focus is on outcomes correlated with levels of educational
attainment, and it is important to be cautious about attributing
all of the differences observed to causation. However, reliable
statistical analyses support the significant role of postsecondary
education in generating the benefits reported.
Many of the averages we report conceal considerable variation
among people with similar levels of education. More information on
this variation can be found in this report’s companion publication,
How College Shapes Lives: Understanding the Issues.
Education Pays 2013 also examines the increases and the
persistent disparities across demographic groups in college
participation and completion. The magnitude of the benefits of
postsecondary education makes ensuring improved access for
all who can benefit imperative.
This executive summary highlights key ideas in the report.
THE BENEFITS OF HIGHER EDUCATION
Individuals with higher levels of education
earn more and are more likely than others to
be employed.
– Median earnings of bachelor’s degree recipients with no
advanced degree working full time in 2011 were $56,500,
$21,100 more than median earnings of high school graduates.
Individuals with some college but no degree earned 14%
more than high school graduates working full time. Their
median after-tax earnings were 13% higher (Figure 1.1).
– Compared to a high school graduate, the median four-year
college graduate who enrolls at age 18 and graduates in four
years can expect to earn enough by age 36 to compensate
for being out of the labor force for four years, as well as for
borrowing the full amount required to pay tuition and fees
without any grant assistance (Figure 1.3).
– Although 16% of male high school graduates earned as much
as or more than the median earnings of male four-year college
graduates in 2011 ($66,200), 84% earned less (Figure 1.5).
– As workers age, earnings rise more rapidly for those with
higher levels of education. For example, the gap between
the earnings of full-time workers whose highest degree is a
bachelor’s degree and those of high school graduates grows
from 54% ($15,200) for 25- to 29-year-olds to 86% ($32,000)
for 45- to 49-year-olds (Figure 1.7A).
– The 2012 unemployment rate for four-year college graduates
ages 25 to 34 was 7.1 percentage points below that for high
school graduates. The unemployment rates for those with
associate degrees and with some college but no degree
were 4.0 and 1.6 percentage points below that for high school
graduates, respectively (Figure 1.9B).
The financial return associated with college
credentials and the gaps in earnings by
education level have increased over time.
– Between 2008 and 2011, the gap between the median
earnings of high school graduates ages 25 to 34 and those
in the same age range with a bachelor’s degree or higher
declined from 74% to 69% for men and from 79% to 70% for
women, but the long-term trend is upward (Figure 1.6).
– The difference between median earnings for women ages 25
to 34 working full time year-round with a bachelor’s degree
or higher and those in the same age range with high school
diplomas rose from 43% in 1971 to 56% in 1991 and to 70%
in 2011. The earnings premium for men rose from 25% in 1971
to 56% and in 1991 and to 69% in 2011 (Figure 1.6).
Federal, state, and local governments enjoy
increased tax revenues from college graduates
and spend less on income support programs
for them, providing a direct financial return on
investments in postsecondary education.
– In 2011, 12% of high school graduates ages 25 and older lived
in households that relied on SNAP (Supplemental Nutritional
Assistance Program) benefits, compared to just 2% of those
with at least a bachelor’s degree. The pattern was similar for
the National School Lunch Program (Figure 1.15).
College-educated adults are more likely
than others to receive health insurance and
pension benefits from their employers.
– In 2011, employers provided pension plans to 52% of fulltime
workers with high school diplomas, 65% of those with
bachelor’s degrees, and 73% of those with advanced degrees
(Figure 1.12A).
– In 2011, employers provided health insurance to 55% of fulltime
workers with high school diplomas, 69% of those with
bachelor’s degrees, and 73% of those with advanced degrees
(Figure 1.13A).
Adults with higher levels of education are
more active citizens than others.
– In 2012, 42% of four-year college graduates, 29% of adults
with some college or an associate degree, and 17% of high
school graduates volunteered for organizations (Figure 1.20B).
6 EDUCATION PAYS 2013
– Among adults ages 45 to 64, 59% of high school graduates
and 80% of bachelor’s degree recipients voted in the 2012
election (Figure 1.21A).
College education leads to healthier lifestyles,
reducing health care costs.
– The gap between the smoking rates of four-year college
graduates and high school graduates increased from 2
percentage points in 1962 to 13 points in 1982, and to 17
points in 2012 (Figure 1.16A).
– Within each age group, college-educated adults are less
likely than others to be obese. In addition, children living in
households with more educated parents are less likely than
other children to be obese (Figures 1.18A and 1.18B).
College-educated mothers spend more time
with children and alter the composition of
that time to suit children’s developmental
needs more than less educated mothers.
– Among both those who are employed and those who are
not, the amount of time mothers spend on their children’s
activities increases with levels of education (Figure 1.19A).
College education increases the chances that
adults will move up the socioeconomic ladder.
– Of adults who grew up in the middle family income quintile,
31% of those with a four-year college degree moved up to the
top income quintile between 2000 and 2008, compared with just
12% of those without a four-year college degree (Figure 1.11).
Substantial evidence indicates that the
associations described above are the result of
increased educational attainment, not just of
individual characteristics.
PARTICIPATION AND SUCCESS IN
HIGHER EDUCATION
Although college enrollment rates continue
to rise, large gaps in enrollment rates and
patterns persist across demographic groups.
– The college enrollment rate of high school graduates from the
lowest family-income quintile increased from 42% in 1992 to
50% in 2002, and to 52% in 2012. The rate for middle-income
students increased from 53% to 55% to 65% over these
decades, while 78% of the highest-income high school
graduates enrolled in college in 1992 and in 2002, and 82%
enrolled in 2012 (Figure 2.1).
– The gaps between the college enrollment rates of black
and Hispanic high school graduates and white high school
graduates narrowed considerably between 2001 and 2011,
when 70% of white, 66% of black, and 62% of Hispanic
high school graduates enrolled in college within a year of
completing high school (Figure 2.2A).
– Thirty-eight percent of dependent undergraduate students
from families with incomes below $29,600 enrolled in public
two-year colleges in 2011-12, and 10% enrolled in for-profit
institutions. In contrast, 22% of undergraduate students from
families with incomes of $106,360 or higher enrolled in public
two-year colleges, and 2% attended for-profit institutions
(Figure 2.4B).
– Enrolling at institutions that are less selective than those for
which students are academically qualified is most common
among those from lower socioeconomic backgrounds. Most
of this enrollment pattern is explained by where students
apply rather than by admission decisions (Figure 2.5).
– In 2007-08, the percentage of young people enrolling in
college within a year after they were scheduled to graduate
from high school ranged from 29% in Nevada and 30% in
the District of Columbia to 61% in Massachusetts and South
Dakota (Figure 2.11).
Educational attainment rates are increasing,
but college completion rates and attainment
patterns differ considerably across
demographic groups.
– Among students who began college in 2006 at the age of 24
or younger and enrolled exclusively full time, 78% had earned
a degree or certificate six years later (Figure 2.7A).
– The percentage of adults in the U.S. between the ages of 25
and 34 with a four-year college degree grew from 6% in 1950
to 24% in 1980 and 1990. In 2012, 34% of adults in this age
group had earned a bachelor’s degree or higher (Figure 2.8A).
– In 2012, the percentage of 25- to 29-year-olds with at least
a bachelor’s degree ranged from 11% for Hispanic males to
43% for white non-Hispanic women (Figure 2.9).
Postsecondary education relies more on
private funding in the U.S. than in most other
developed countries.
– In 2010, the percentage of expenditures on higher education
coming from public as opposed to private sources ranged
from 22% in Chile and 25% in the United Kingdom, to 96%
in Finland and Norway. In the United States, 36% of funding
was public, 48% came from households, and 16% was from
other private sources (Figure 2.12).
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 7
Introduction
As we emerge from the Great Recession, it is increasingly clear
that our postsecondary education system and the economic
and social context supporting it must evolve if we are to take
best advantage of our human and physical resources. While
the developing recovery has improved life for many Americans,
those at the top are benefiting most. The gaps between those
who grow up in privilege and those who do not continue to
widen. Too many young people are struggling to find their
places in the adult world.
A college education does not carry a guarantee of a good life
or even of financial security. But the evidence is overwhelming
that for most people, education beyond high school is a
prerequisite for a secure lifestyle and significantly improves the
probabilities of employment and a stable career with a positive
earnings trajectory. It also provides tools that help people to live
healthier and more satisfying lives, to participate actively in civil
society, and to create opportunities for their children.
The word “college” has come to mean many different things.
It includes universities with ivy-covered walls and small seminar
classes, offering bachelor’s and graduate degrees. But it also
includes public and private for-profit institutions specializing in
short-term training for specific occupations. College students
may be 18-year-olds straight out of high school or they may be
adults seeking new labor-market skills in the middle of their
work lives.
THE EDUCATION PAYS REPORT
Education Pays 2013 contains data on the financial and
nonfinancial benefits of postsecondary education, broadly
defined. Part 1 provides up-to-date information about earnings,
employment and unemployment patterns, and nonwage
attributes associated with the jobs held by people with
different levels of education. Because many of the changes
that education engenders in people’s lives are outside of their
work lives, we report on health and lifestyle patterns as well.
Much of the information in this report pertains to the benefits
that accrue to society as a whole when more people are
college-educated, including increases in tax revenues and
reductions in public expenditures. Other differences associated
with postsecondary education, such as frequencies of smoking,
obesity, voting, volunteering, and participating in educational
activities with children also have a significant impact not only on
individuals, but also on the fiscal and social strength of our nation.
The second part of Education Pays focuses on participation and
success rates in postsecondary education, with an emphasis
on differences among demographic groups. This year, we are
introducing a new companion publication, How College Shapes
Lives: Understanding the Issues. This study examines the
variation in postsecondary outcomes, as well as the ambiguity
involved in measuring those outcomes. Education Pays includes
some information on the variation in earnings among individuals
with similar levels of education (Figure 1.5), the impact of
the length of time it takes to earn a degree (Figure 1.3), and
completion rates for those who begin college (Figure 2.7);
however, it does not go into depth on these issues or provide
much insight into growing concerns about the uncertainty
involved in individual decisions about postsecondary education.
Taken together, the two publications should provide readers
with a greater understanding of the importance of investments
in postsecondary education.
Not all investments in education pay off equally well. Well-designed
policies and strong support for individual decision-making in a
complex environment have the potential to make our society
both more equitable and more productive. We should focus
not only on providing more education but also on providing the
opportunities that will best serve the varied needs, preferences,
and circumstances of the population.
Like the College Board’s Trends in College Pricing and Trends
in Student Aid reports, Education Pays collects and reports
data. Some of the benefits of higher education documented
in this report are widely cited; others are less well known. We
bring publicly available government statistics together with
less familiar academic research in order to paint a detailed
and integrated picture of the benefits of higher education
and how they are distributed. Where possible, we have
summarized complex analyses in a manner consistent with the
straightforward presentation style of this report. We provide
references to more in-depth and sophisticated analyses so that
readers can pursue issues of particular interest.
Education Pays is intended as a resource and a reference for
anyone interested in understanding the value of investments
in higher education and how different groups in society
benefit from those investments. Readers will draw their own
inferences about the public policies most consistent with the
evidence provided.
THE PAYOFF OF HIGHER EDUCATION
The latest income data available for most of the indicators in
Education Pays 2013 are for 2011. In the three years since we
reported on 2008 income in Education Pays 2010, the gap
between the median earnings of high school graduates ages
25 to 34 and those in the same age group with a bachelor’s
degree or higher declined from 74% to 69% for men and from
79% to 70% for women. The earnings gap grows as workers
age and move further along their career paths, but discussions
8 EDUCATION PAYS 2013
frequently focus on recent college graduates, particularly when
the economy is weak. The increasing number of students
who face difficulty repaying their student loans provides some
justification for this perspective. But the evidence still strongly
supports the conclusion that the long-term benefits of investing
in postsecondary education exceed the costs, not just for
society but also for the individual students who are bearing an
increasing portion of the cost of their own education.
The long-term upward trend in the earnings premium for
college graduates has led to a focus on that growth. But the
premium does not have to keep growing for the investment
to be a good one. According to Greenstone and Looney (2011)
of the Brookings Institution’s Hamilton Project, “On average,
the benefits of a four-year college degree are equivalent to an
investment that returns 15.2 percent per year. This is more than
double the average return to stock market investments since
1950, and more than five times the returns to corporate bonds,
gold, long-term government bonds, or home ownership. From
any investment perspective, college is a great deal.”
Our calculation in Figure 1.3 compares the median cumulative
earnings of high school graduates to those of college graduates
and finds that by about age 36, higher earnings compensate not
only for four years out of the labor force, but also for average
tuition and fee payments at a four-year university funded fully
by student loans at 6.8% interest. The cumulative earnings of
associate degree recipients reach this point when graduates
are about 34. Modifying the assumptions underlying these
calculations by, for example, increasing the assumed time
spent in school, allowing for paid work while in school, or taking
grant aid into consideration will lengthen or shorten the time
required to make up the investment. But the key point is that
for the typical student, the investment pays off very well over
the course of a lifetime — even considering the expense.
Anecdotes about individual students whose paths through
postsecondary education have not worked out well do not
contradict the fact that on average and for most students,
college is an excellent financial investment. Benson, Esteva,
and Levy (2013) find that even after accounting for actual
time to degree, the probability of enrolling in college but not
completing a degree, and the higher taxes paid by those with
higher levels of education, the average rate of return to college
remains high. They explain that this reality is not incompatible
with the perception that more former students are facing
difficulties repaying their loans. This issue has gained attention
because of a combination of rising tuition and debt levels with
increasing variation in the earnings of college graduates.
In addition to the variation in earnings characterizing the weak
economy in recent years, unemployment has become more
common, even for college graduates. But the data show large
differences associated with level of education. Figure 1.9A
shows that the unemployment rate for college graduates fell
from its peak of 4.7% in 2010 to 4.0% in 2012, but it remained
2 percentage points higher than the 2007 level of 2.0%.
However, the unemployment rate for high school graduates,
which fell from its peak of 10.3% in 2010 to 8.3% in 2012, was
almost 4 percentage points higher than its 2007 level of 4.4%.
It is important that we not allow the financial returns to college
to obscure the other benefits of a college education. Paying
for college requires too large of an expenditure to ignore the
expected earnings on the other side, but we would lose a
tremendous amount as a society if each individual set as his or
her life goal maximizing lifetime income. College means many
different things to people — partly depending on the stage of
life at which they enroll, the type of institution they attend, the
subjects they choose to study, whether they enroll full time
or part time, and whether they are residential or commuter
students. But as the data in Education Pays indicate, overall
behavior patterns and attitudes differ considerably by level of
education. The knowledge, fulfillment, self-awareness, and
broadening of horizons associated with education transform the
lives of students and of those with whom they live and work.
Postsecondary education should pay off well enough for people
to pay back their loans and not suffer a diminished standard of
living. But the personal growth, increased understanding of the
world, and wider range of options available to college-educated
adults deserve our attention. Our society would become
immeasurably poorer if financial pressures were to lead us to
think of higher education as synonymous with job training.
The fact is that the typical college graduate is considerably
more likely than the typical high school graduate to have a
job, and that job is likely to pay significantly more than the
average earnings of high school graduates. The data may not
be as colorful as the anecdotes we see so often in the press,
but they tell a more realistic story. They also allow for a better
understanding of which students and which circumstances are
most likely to create the stories of the outliers who attract so
much attention.
COLLEGE COMPLETION
Some of the doubts about the benefits of higher education arise
from the fact that increasing college enrollment rates over time for
all demographic groups have been accompanied by persistently low
degree-completion rates. Not well known is that over three-quarters
of students who begin college at age 24 or younger and enroll
exclusively full time earn a degree or certificate within six years
(Figure 2.7A). Moreover, the overall graduation rates for first-time
full-time students are actually rising slowly.
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 9
Still, too many people begin college, invest both time and
money, and never earn a credential. The gaps in completion
rates by family income level, age, and enrollment intensity
are large. We also know that there is considerable variation
in completion rates across types of institutions and among
individual institutions with similar student bodies. Unfortunately,
these very real problems have led some observers to the
unwarranted conclusion that people who do not have strong
academic preparation, who do not have the required financial
resources, or who are unfamiliar with the expectations and
requirements of colleges and universities should not pursue
postsecondary education.
Research, however, tells us otherwise. Numerous economic
analyses indicate that students who, because of their
demographic characteristics and academic experiences,
hesitate to go to college stand to benefit the most from a
postsecondary degree (Card, 2001; Brand & Xie, 2010; Hout,
2012). This finding does not imply that individuals on the margin
of college attendance will end up earning more than those
who knew from an early age that they would attend college.
It means that the incremental gain in their earnings resulting
from a college education may be larger. It is relatively rare for
young people whose parents are affluent — or even middleclass
— college graduates to skip college altogether. For them,
going to college and earning a bachelor’s degree is the “default
option.” Those who choose not to enroll usually have actively
considered and rejected the idea. But for too many low-income
and first-generation students, financial and logistical barriers
loom so large that the possibility of going to college never
seems realistic. Many of these students would likely benefit
from appropriate postsecondary educational opportunities.
First-generation students and those from low-income
backgrounds frequently lack the information needed to make
the best choices when they do enroll in college. As the data
in Part 2 of Education Pays reveal, many students enroll in
colleges that are less selective and less challenging than
those to which they would likely be admitted based on their
academic qualifications. Numerous studies have shown that
this enrollment pattern significantly decreases the probability
of graduating.
As Figure 2.6A indicates, over 40% of the undergraduate
credentials awarded in 2011-12 were certificates or associate
degrees. Some people who begin bachelor’s degrees and
end up leaving school without a credential might have been
better served by enrolling in a shorter program; on the other
hand, many who enroll in shorter programs diminish their
chances of ever earning a four-year degree. Arguments that
confuse the idea of increasing postsecondary participation
and attainment with the idea that almost everyone should
earn a bachelor’s degree are misleading. There are many
postsecondary options. Students need better guidance
about which options to pursue. With that guidance, for most
individuals the choice with the best long-run outcomes will
involve some form of postsecondary study.
INTERPRETING THE EVIDENCE
Many of the graphs in this report compare the experiences of
people with different education levels. In general, while simple
descriptions of correlations provide useful clues, they do not
reliably determine causation or measure the exact size of the
effects. They are best interpreted as providing broadly-gauged
evidence of the powerful role that higher education plays in the
lives of individuals and in society. That said, a growing body of
evidence points to the direct impact of higher education not
only on specific job-related skills, but also on the attitudes and
behavior patterns of students. Education enables people to
better adapt to change. It also makes them more likely to take
responsibility for their health and for the society in which they
live, and to parent in ways that improve the prospects for their
own children.
The evidence is overwhelming that higher education
improves people’s lives, makes our economy more efficient,
and contributes to a more equitable society. As Figure 1.11
illustrates, postsecondary education is key to the ability of adults
to rise above the socioeconomic status of their parents. Without
a college education, those born into the lower economic rungs
are likely to stay there.
Narrowing the gaps in college participation and success across
income groups is vital to our future as a nation. Different paths
are appropriate for different individuals, and our challenge is to
make the most promising paths readily available to students
from all backgrounds. Money alone cannot solve this problem.
As inequality in the distribution of resources in our society
increases over time, the hurdles facing disadvantaged children
grow in relative terms. Our education system must do better at
helping them to overcome these hurdles.
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 at trends.collegeboard.org. Please feel free to cite or
reproduce the data in this report for noncommercial purposes
with proper attribution.
10 EDUCATION PAYS 2013 Part 1: Individual and Societal Benefits
Part 1:
Individual and Societal Benefits of Higher Education
The benefits of investments in higher education are shared by
individual students and the societies of which they are a part.
Individuals with college degrees, and to a lesser extent those
who have some college experience but do not have a degree,
earn more than others and enjoy better working conditions.
They contribute more to society, both through higher tax
payments and through their civic involvement. Collegeeducated
adults also give their children benefits that increase
the prospects that the next generation will prosper and will be
in a position to contribute to society in a variety of ways.
The indicators in Part 1 of Education Pays document the
financial benefits of college participation and success and other
ways in which higher education improves the lives of adults and
their communities.
Earnings are too often emphasized as the primary benefit of
higher education, and may overshadow other outcomes that
could well be as important. Nonetheless, the price of college
makes an understanding of the financial benefits critical, and
several of the following pages focus on earnings differences
corresponding to levels of educational attainment. During their
working lives, college graduates earn, on average, about 65%
more than high school graduates, and those with advanced
degrees earn two to three times as much as high school
graduates. The earnings premium increases as workers move
further along their career paths.
Salaries are not the only form of compensation correlated with
education level. For example, college graduates are more likely
than other employees to enjoy employer-provided health and
pension benefits. They are more likely to feel that they learn
new things on their jobs and are somewhat more satisfied with
their work than others. These findings do not mean that there
are no exceptions to the rule. Some individuals make fortunes
despite little formal education, and some struggle financially,
even with a college education. As Figure 1.5 illustrates, there is
considerable variation in earnings among people with the same
level of education. But the overall patterns are clear and dramatic
— more education means increased opportunities. Although it
requires the considerable investment of dollars, time, and effort,
higher education measurably improves the lives of most who
participate and significantly increases the probability that adults
will move up in the socioeconomic hierarchy.
Society as a whole also enjoys a financial return on the
investment in higher education. In addition to widespread
productivity increases, the higher earnings of educated
workers generate higher tax payments at the local, state, and
federal levels. Four-year college graduates pay, on average,
78% more in taxes each year than high school graduates,
and for those who continued on to earn a professional
degree, average tax payments are more than three and a
half times as high as those paid by high school graduates.
Spending on social support programs such as unemployment
compensation, SNAP, and Medicaid is much lower for
individuals with higher levels of education.
While the pages in this section report relationships between
education and outcomes and not measures of causation,
a large body of reliable research provides evidence that
most of the differences in outcomes are, in fact, the result
of individuals’ education. The evidence is compelling that
postsecondary education not only provides valued credentials
but also increases skills and knowledge and changes the way
people approach their lives.
Beyond the economic return to individuals and to society as
a whole, higher education improves quality of life in a variety
of ways, only some of which can be easily quantified. High
levels of labor force participation, employment, and earnings
increase the material well-being of individuals and the wealth
of society, and also carry psychological benefits. Adults
with higher levels of education are more likely to engage in
organized volunteer work, to understand political issues, and
to vote. They are also more likely to live healthy lifestyles. The
issue is not just that they earn more and have better access
to health care; college-educated adults smoke less, exercise
more, and have lower obesity rates. These differences not
only affect the lifestyles and life expectancies of individuals
but also reduce medical costs for society as a whole.
Mothers with higher levels of education spend more time
on their children’s activities. In other words, participation in
postsecondary education improves the quality of civil society.
The pages in this section do not provide a comprehensive
measure of the benefits of higher education. They do, however,
provide an indication of the nature and extent of the return on
our investment in educational opportunities.
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 11
Education, Earnings, and Tax Payments
FIGURE 1.1
Median Earnings and Tax Payments of Full-Time Year-Round Workers Ages 25 and Older, by Education Level, 2011
The bars in this graph show median earnings at each education level. The blue segments represent the estimated average federal, state, and
local taxes paid at these income levels. The orange segments show after-tax earnings.
NOTE: The numbers in parentheses on the y-axis indicate the percentage of all full-time year-round workers with each education level in 2011. Taxes paid
include federal income, Social Security, Medicare, state and local income, sales, and property taxes. Percentages may not sum to 100 because of rounding.
SOURCES: U.S. Census Bureau, 2012, Table PINC-03; Internal Revenue Service, 2010; Davis et al., 2013; calculations by the authors.
In 2011, median earnings of bachelor’s degree recipients with no advanced degree working
full time were $21,100 higher than those of high school graduates. The difference includes
$5,000 in tax payments and $16,100 in after-tax income.
– Individuals with some college but no degree earned 14%
more than high school graduates working full time year-round.
Their median after-tax earnings were 13% higher.
– Median earnings for individuals with associate degrees
working full time were 27% higher than median earnings
for those with only a high school diploma. After-tax earnings
were 25% higher.
– Individuals with master’s degrees earned twice as much
before taxes and took home 90% more than high school
graduates working full time. Those with doctoral degrees
working full time earned 2.6 times as much and had after-tax
earnings 2.4 times as high school graduates.
– The median total tax payments of full-time workers with
a professional degree in 2011 were over three and a half
times as high as the median tax payments of high school
graduates working full time. After-tax earnings were about
2.7 times as high.
ALSO IMPORTANT:
– Seventy-seven percent of four-year college graduates ages 25 and older
had earnings in 2011 and 58% worked full time year-round. Fifty-nine
percent of high school graduates ages 25 and older had earnings, and
41% worked full time. (U.S. Census Bureau, 2012, Table PINC-03)
– The gap between the earnings of high school graduates and the earnings
of individuals whose highest degree is a bachelor’s degree is 60% for
full-time workers and 73% for all earners. The corresponding difference
in tax payments is 77% for full-time workers and 96% for all earners.
(U.S. Census Bureau, 2012, Table PINC-03)
– All of the differences in earnings reported here may not be attributable
to education level. Educational credentials are correlated with a variety
of other factors that affect earnings, including, for example, parents’
socioeconomic status and some personal characteristics.
– While the average high school graduate may not increase his or her
earnings to the level of the average college graduate simply by earning
a bachelor’s degree, careful research on the subject suggests that the
figures cited here do not measurably overstate the financial return to
higher education. (Carneiro, Heckman, & Vytlacil, 2003; Rouse, 2005;
Harmon, Oosterbeek, & Walker, 2003)
Earnings
$23,400
$20,300
$14,800
$11,400
$8,600
$7,500
$6,400
$4,100
$45,100
$36,200
$32,900
$29,000
$21,000 $20,500
$78,800 $102,200
$70,700 $91,000
$55,200 $70,000
$56,500
$44,800
$40,400
$35,400
$25,100
Taxes Paid After-Tax Earnings
$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000
Median Earnings
Education Level
Less than a
High School Diploma (7%)
High School Diploma (27%)
Some College,
No Degree (17%)
Associate Degree (11%)
Bachelor’s Degree (25%)
Master’s Degree (10%)
Doctoral Degree (2%)
Professional Degree (2%)
12 EDUCATION PAYS 2013 Part 1: Individual and Societal Benefits
Lifetime Earnings
During a 40-year full-time working life, the median earnings of bachelor’s degree recipients
without an advanced degree are 65% higher than the median earnings of high
school graduates.
FIGURE 1.2
Expected Full-Time Lifetime Earnings Relative to High School Graduates, by Education Level
NOTE: Based on the sum of median 2011 earnings for full-time year-round workers at each age from 25 to 64 for each education level. No allowance is
made for the shorter work life resulting from time spent in college or out of the labor force for other reasons. Future earnings are discounted at a 3% annual
rate to account for the reality that because of forgone interest, dollars received in the future are not worth as much as those received today. Discounting
does not have a large impact on the lifetime earnings ratios. The calculations are illustrative and do not represent what individuals will actually earn in the
future. Earnings ratios calculated using data from another year will likely yield slightly different results. For example, the earnings ratio of bachelor’s degree
recipients to high school graduates is 1.61 based on 2005 earnings data, 1.66 based on 2008 earnings data, and 1.65 based on 2011 earnings data.
SOURCES: U.S. Census Bureau, 2012, Table PINC-03; calculations by the authors.
– The median lifetime earnings of individuals with an associate
degree and those with some college education but no
degree (a category that includes certificate holders) are
27% and 13% higher than the median earnings of high
school graduates, respectively.
– The calculations in Figure 1.2 are based on earnings of
individuals working full time year-round. Because the
proportion of adults working full time year-round increases
with education level (for example, 65% of four-year college
graduates and 51% of high school graduates between the
ages of 25 and 64 worked full time in 2011), the lifetime
earnings differentials would be larger if all adults — or all
adult workers — were included in these calculations.
– As Figure 1.1 reports, higher earnings correspond to higher tax
payments. If after-tax earnings were used to calculate lifetime
earnings, the ratio of lifetime earnings for individuals with more
than a high school diploma to lifetime earnings for high school
graduates would decline slightly.
– While including advanced degree holders with those whose
highest degree is a bachelor’s degree would overstate the
payoff of a four-year degree, excluding them understates the
payoff because part of the benefit of a bachelor’s degree is
the option it provides for obtaining a graduate degree.
ALSO IMPORTANT:
– There are a variety of ways to estimate lifetime earnings for people
with different levels of education. Although some reasonable
assumptions would lower the ratios shown here and other reasonable
assumptions would increase those ratios, the results consistently
reveal significantly higher earnings levels associated with higher levels
of education.
– A number of careful studies show that people who are kept out of
college by barriers like a shortage of funds or the absence of nearby
appropriate colleges earn higher than average returns when the
barriers are lowered. In other words, the idea that students who are
not enrolling in college would be unlikely to enjoy the average benefits
reported here is not supported by the evidence. (Brand & Xie, 2010)
Earnings
0.72
1.00
1.13
1.27
1.65
1.96
2.43
2.92
Professional
Degree
Doctoral
Degree
Master’s
Degree
Bachelor’s
Degree
Associate
Degree
Some College,
No Degree
High School
Diploma
Less than a
High School
Diploma
Education Level
Earnings Ratio
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 13
FIGURE 1.3
Estimated Cumulative Full-Time Earnings (in 2011 Dollars) Net of Loan
Repayment for Tuition and Fees, by Education Level
Earnings Premium Relative to Price
of Education
Compared to a high school
graduate, the median four-year
college graduate who enrolls at
age 18 and graduates in four years
can expect to earn enough by age
36 to compensate for being out of
the labor force for four years and
for borrowing the full tuition and
fee amount without any grant aid.
– For the median associate degree recipient who
borrows to cover tuition and fees at a community
college and earns an associate degree two years
after high school graduation, total earnings net of
loan repayment exceed the total earnings of high
school graduates by age 34.
All the break-even ages below refer to high school
graduates as the comparison group:
1. The lower tuition and fee level in public colleges
and universities lowers the break-even age for
bachelor’s degree recipients graduating in four
years from 36 to 33.
2. If a student stays out of the labor force and
borrows the full tuition and fees for five years
to complete a bachelor’s degree, the break-even
age will be 37 instead of 36. Taking three years
instead of two to complete an associate degree
raises the break-even age from 34 to 38.
3. If a student borrows the average tuition and
fees net of grant aid, the break-even age for
both associate and bachelor’s degree recipients
declines to 32.
4. Assuming average in-school earnings of $4,060
per year for bachelor’s degree recipients lowers
the break-even age from 36 to 34. The higher
average in-school earnings ($7,060) of associate
degree recipients lowers their break-even age
from 34 to 30. Associate and bachelor’s degree
recipients’ in-school earnings are based on
earnings of students who were enrolled in
2003-04 and earned an associate degree by 2006
and a bachelor’s degree by 2009, respectively.
5.If the earnings of all working adults — instead
of only those working full time year-round —
are considered, the typical four-year college
graduate makes up for time out of the labor
force and for paying tuition by age 33.
Orange solid line: cumulative median earnings at each age for high school
graduates entering the workforce full time at age 18. Light blue solid line:
cumulative median earnings at each age for four-year college graduates entering
the workforce at age 22 after four years out of the labor force. Loan payments are
subtracted from earnings for the first 10 years after graduation, covering both the
principal and 6.8% interest during and after college. Light orange dotted line: the
same calculation for students borrowing to cover two years of public two-year
college tuition and fees and entering the workforce at age 20.
NOTE: Based on median 2011 earnings for individuals working full time year-round at each
education level and each age. Includes only students who complete degrees; excludes
bachelor’s degree recipients who earn advanced degrees. Assumes college graduates borrow
$14,352 to cover total first-year tuition and fee charges for 2011-12 (weighted average of $8,256
average public four-year in-state and $27,883 private nonprofit four-year tuition and fees) for
the first year and 5% more each of the next three years. Assumes associate degree recipients
borrow $2,959 2011-12 average public two-year college tuition and 5% more the next year.
Tuition payments and earnings are discounted at 3%, compounded every year beyond age 18.
In previous editions of Education Pays, this calculation was based on public four-year in-state
tuition and fees, rather than a weighted average.
SOURCES: U.S. Census Bureau, 2012, Table PINC-03; Baum and Ma, 2012; calculations by
the authors.
Break-Even Ages Under Alternative Assumptions
AA
Recipient
vs.
HS
Graduate
BA
Recipient
vs.
HS
Graduate
BA
Recipient
vs.
AA
Recipient
Baseline (as shown in Figure 1.3) 34 36 37
Alternative Assumptions
1. In-state tuition and fees at public four-year institutions instead of
weighted average of public and private nonprofit four-year tuition and fees
34 33 33
2. Longer time to degree: 3 years out of the labor force and 3 years of
tuition borrowed for associate degree recipients; 5 years out of the labor
force and 5 years of tuition borrowed for bachelor’s degree recipients
38 37 37
3. Borrowing weighted net tuition and fees (tuition and fees minus all
grants and tax benefits)
32 32 32
4. Work average amount in college instead of no earnings 30 34 36
5. Based on all workers instead of just full-time year-round 30 33 35
Earnings
High School Diploma
Associate Degree
Bachelor’s Degree
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
Cumulative Net Earnings
18 24 30 36 42 48 54 6460
Age
14 EDUCATION PAYS 2013 Part 1: Individual and Societal Benefits
Earnings by Race/Ethnicity, Gender, and
Education Level
NOTE: Based on combined data from the 2010, 2011, and 2012 Annual Social and Economic Supplement of the Current Population Survey. Earnings in 2009
and 2010 are adjusted to 2011 dollars using the Consumer Price Index for all urban consumers. Median earnings are the median of combined data. The “Asian,”
“Black,” and “White” categories include individuals who reported one race only and who reported non-Hispanic. The sample size for Asian females with less
than a high school diploma is too small to allow for reliable reporting.
SOURCES: U.S. Census Bureau, 2010a, 2011a, 2012a; Bureau of Labor Statistics, 2013a; calculations by the authors.
FIGURE 1.4
Median Earnings (in 2011 Dollars) of Full-Time Year-Round Workers Ages 25–34, by Race/Ethnicity, Gender, and Education Level,
2009–2011
Median earnings for Asian men between the ages of 25 and 34 with a four-year college
degree working full time year-round in 2009–2011 were 91% ($27,400) higher than median
earnings for Asian men with a high school diploma. The college earnings premium for white
males was 40% ($14,800).
– For women ages 25 to 34, the
earnings premium for a four-year
college degree ranged from 56% for
black and white women ($14,200
and $15,300, respectively) to 85%
($22,700) for Asian women.
– Among full-time workers ages 25 to 34,
the earnings differential between those
with some college but no degree and
high school graduates ranged from 9%
($3,200) for white men to 27% ($8,200)
for Asian men.
– The earnings differential between
associate degree recipients and high
school graduates ranged from 17%
($4,300) for black women to 37%
($10,000) for Asian women.
– Median earnings for 25- to 34-year-old
white male high school graduates working
full time were 38% ($10,300) higher
than median earnings for white female
high school graduates. Among bachelor’s
degree recipients, the gender gap was
23% ($9,800).
ALSO IMPORTANT:
– Figure 1.4 shows the median earnings of
individuals working full time year-round. The
proportion of individuals working full time
year-round increases with education level.
For example, in 2009–2011, the proportion
of the Asian female population working
full time year-round ranged from 22% for
those without a high school diploma to
48% for those with an advanced degree.
The proportion of white men working full
time year-round ranged from 37% for those
without a high school diploma to 78% for
those with an advanced degree.
Ratio of Median Earnings of Bachelor’s
Degree Recipients to Median Earnings of
High School Graduates, by Race/Ethnicity
and Gender, Full-Time Year-Round Workers,
2009–2011
BA/HS Earnings Ratio
Ages
25–34
Ages
25 and Older
Asian Female 1.85 1.83
Male 1.91 1.93
Black Female 1.56 1.68
Male 1.67 1.56
Hispanic Female 1.60 1.64
Male 1.58 1.72
White Female 1.56 1.59
Male 1.40 1.61
All Female 1.60 1.61
Male 1.52 1.63
$26,800
$32,300
$36,800 $49,500
$70,700
$30,200
$23,200
$38,400
$40,100 $57,600
$76,200
$25,200
$18,300
$29,900
$31,600
$40,300
$50,800
$25,300 $19,300
$27,900
$29,600
$39,500$47,400
$27,100 $21,800
$30,300
$35,500
$42,400 $52,500
$34,000
$24,400
$39,200
$42,400
$51,800
$68,800
$26,300 $19,300
$29,900
$34,000
$42,100
$52,400
$37,400
$29,200
$40,600
$46,100
$52,200
$67,300
$30,500 $22,700
$37,200
$40,000$48,200
$58,300
$27,200
$25,200
$33,800
$35,300
$45,300
$66,300
Race/Ethnicity and Gender
Median Earnings
$0
$20,000
$40,000
$60,000
$80,000
$100,000
Female Male Female Male Female Male Female Male Female Male
Asian Black Hispanic White All
Less than a
High School Diploma
High School
Diploma
Some College,
No Degree
Associate
Degree
Bachelor’s
Degree
Advanced
Degree
Earnings
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 15
FIGURE 1.5
Median, 25th Percentile, and 75th Percentile Earnings of Full-Time Year-Round Workers Ages 25 and Older, by Gender and Education
Level, 2011
Earnings by Gender and Education Level
– In 2011, although 16% of male high
school graduates earned as much as or
more than the median earnings of male
four-year college graduates ($66,200),
84% earned less.
– In 2011, 20% of male four-year college
graduates with no advanced degree
earned less than the median earnings of
male high school graduates ($40,400),
while 80% earned more.
– In 2011, although 14% of female high
school graduates earned as much as
or more than the median earnings of
female four-year college graduates
($49,100), 86% earned less.
– In 2011, 16% of female four-year college
graduates with no advanced degree
earned less than the median earnings of
female high school graduates ($30,000),
while 84% earned more.
– In 2011, 62% of males with some
college education but no degree
and 68% of males holding associate
degrees earned more than the median
earnings of male high school graduates.
– In 2011, 63% of females with some
college education but no degree and
70% of females holding associate
degrees earned more than the median
earnings of female high school graduates.
ALSO IMPORTANT:
– Figure 1.5 includes only full-time year-round
workers ages 25 and older. Among both men
and women, the percentage of individuals who
are employed rises with level of education,
as does the percentage of those employed
who are working full time. (Bureau of Labor
Statistics, 2013b)
This graph shows earnings by education level separately for male and female full-time year-round workers ages 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, 2012, Table PINC-03; U.S. Census Bureau, 2012a; calculations by the authors.
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.
Less than a
High School
Diploma
Some College,
No Degree
Bachelor’s
Degree
Doctoral
Degree
Less than a
High School
Diploma
Some College,
No Degree
Bachelor’s
Degree
Doctoral
Degree
High School
Diploma
Associate
Degree
Master’s
Degree
Professional
Degree
High School
Diploma
Associate
Degree
Master’s
Degree
Professional
Degree
$15,800 $21,100 $25,200 $26,900
$35,100
$44,600
$53,100 $54,100
$20,700
$30,000 $34,600 $39,300
$49,100
$60,300
$77,500 $80,700
$27,100
$40,500
$47,000
$53,400
$69,000
$81,400
$109,000
$141,000
$19,900
$27,300 $31,700 $36,000
$43,900
$56,600
$65,200
$71,800
$27,300
$40,400
$47,100 $50,900
$66,200
$83,000
$100,800
$119,500
$40,200
$56,500
$67,200 $71,900
$100,000
$125,000
$150,000
Median $170,000
25th Percentile
75th Percentile
Gender and Education Level
Earnings
$0
$50,000
$100,000
$150,000
$200,000
Female Male
Earnings
16 EDUCATION PAYS 2013 Part 1: Individual and Societal Benefits
SOURCES: Data for 1993 and prior: National Center for Education Statistics (NCES), 2004a; Data for 1994 and after: U.S. Census Bureau, 1995–2012, PINC tables;
CPI-U: Bureau of Labor Statistics, 2013a; calculations by the authors.
Earnings over Time by Gender and
Education Level
In 2011, median earnings were 70% higher for females ages 25 to 34 with a bachelor’s degree or
higher working full time year-round than for those with only a high school diploma; the premium
for males was 69%. These earnings gaps were higher than the gaps a decade earlier, but lower
than the peaks for women in 2009 and for men in 2008.
FIGURE 1.6
Median Earnings (in 2011 Dollars) of Full-Time Year-Round Workers Ages 25–34, by Gender and Education Level, 1971–2011
– Between 2006 and 2011, real median earnings declined by
7% for male high school graduates and by 2% for men with
bachelor’s degrees or higher. Real median earnings rose by
2% for female high school graduates but declined by 2% for
women with a bachelor’s degree or higher.
– Within the “Bachelor’s Degree or Higher” category, 25%
of men and 31% of women had advanced degrees in 2011,
compared to 23% of men and 24% of women a decade earlier.
– The gap between median earnings for 25- to 34-year-old males
with advanced degrees and those with only bachelor’s degrees
increased from 23% in 2001 to 36% in 2011; for women the
increase was from 15% to 25%.
ALSO IMPORTANT:
– The overall distribution of income in the United States became more
unequal between 1971 and 2011. The share of total income received
by households in the lowest 20% of the income distribution declined
from 4.1% in 1971 to 3.8% in 1991, and to 3.2% in 2011.
– The share of total income received by households in the highest 20%
of the income distribution rose from 43.5% in 1971 to 46.5% in 1991,
and to 51.1% in 2011.
– The share of total income received by households in the top 5% of the
income distribution rose from 16.7% in 1971 to 18.1% in 1991 and to
22.3% in 2011. (U.S. Census Bureau 2012, Historical Income Table H-2)
Percentage of “Bachelor’s Degree or Higher” Category with Advanced Degrees (Master’s, Doctoral, or Professional)
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Female 20% 19% 20% 21% 21% 21% 22% 24% 23% 22% 24% 26% 27% 27% 27% 28% 31% 30% 28% 32% 31%
Male 25% 24% 23% 23% 25% 22% 22% 22% 22% 21% 23% 24% 25% 25% 25% 25% 24% 28% 27% 24% 25%
Advanced Degree
Bachelor’s Degree
Associate Degree
Bachelor’s Degree
or Higher
Some College or
Associate Degree
Some College
High School
Diploma
Grades 9-11
Median Earnings in 2011 Dollars
$20,000
$40,000
$60,000
$80,000
$0
1971 1975 1979 1983 1987 1991 1995 1999 2003 2007 2011 1971 1975 1979 1983 1987 1991 1995 1999 2003 2007 2011
Gender and Year
Female Male
Earnings
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 17
Earnings Paths
Earnings peak at ages 45–49 or 50–54 for workers at all levels of education. The increase
in earnings from ages 25–29 to the peak is largest for four-year college graduates.
– For full-time year-round workers, median earnings of 45- to
49-year-olds with high school diplomas are 33% higher than
those of 25- to 29-year-olds. The difference is 60% for four-year
college graduates and larger for those with advanced degrees.
– The earnings gap between high school graduates and individuals
with higher levels of education is smallest for 25- to 29-year-olds.
For example:
? For full-time workers with associate degrees, the earnings
gap grows from 25% ($7,000) for 25- to 29-year-olds to 34%
($12,500) for 45- to 49-year-olds and to 36% ($12,800) for
60- to 64-year-olds.
? For full-time workers whose highest degree is a bachelor’s
degree, the earnings gap grows from 54% ($15,200) for
25- to 29-year-olds to 86% ($32,000) for 45- to 49-year-olds
and is 74% ($26,500) for 60- to 64-year-olds.
– The earnings gap between high school graduates and
bachelor’s degree holders ages 25 to 29 increases from 54%
($15,200) to 72% ($15,500) when part-time workers are
included. For those ages 45 to 49, the earnings premium for
four-year college graduates working full time is 86% ($32,000)
and for all workers it is 87% ($26,700).
ALSO IMPORTANT:
FIGURE 1.7A
Median Earnings of Full-Time Year-Round Workers by Age and
Education Level, 2009–2011
Percentage of All Workers Working Full-Time Year-Round, by Age and
Education Level, 2009–2011
Age
Less
than a
High
School
Diploma
High
School
Diploma
Some
College,
No
Degree
Associate
Degree
Bachelor’s
Degree
Master’s
Degree
Doctoral
Degree
Professional

Degree
25 to 29 49% 60% 59% 65% 71% 68% 65% 68%
45 to 49 60% 70% 72% 73% 76% 78% 80% 84%
60 to 64 56% 61% 62% 63% 64% 60% 70% 71%
SOURCES: U.S. Census Bureau, 2012f; calculations by the authors.
Full-Time Year-Round Workers All Workers
Age
Less than
a High
School
Diploma
High
School
Diploma
Some
College,
No
Degree
Associate
Degree
Bachelor’s
Degree
Master’s
Degree
Doctoral
Degree
Professional

Degree
Less than
a High
School
Diploma
High
School
Diploma
Some
College,
No
Degree
Associate
Degree
Bachelor’s
Degree
Master’s
Degree
Doctoral
Degree
Professional

Degree
25 to 29 $22,000 $27,900 $31,100 $34,900 $43,100 $50,000 $59,400 $56,200 $16,000 $21,600 $23,900 $28,700 $37,100 $42,400 $48,900 $48,600
45 to 49 $26,900 $37,100 $44,300 $49,600 $69,100 $81,300 $100,000 $122,400 $21,200 $30,800 $36,700 $41,500 $57,500 $72,000 $92,300 $103,900
60 to 64 $27,300 $35,600 $43,100 $48,400 $62,100 $74,200 $100,900 $120,500 $20,100 $26,800 $32,500 $37,000 $47,000 $57,000 $84,300 $100,600
NOTE: Based on the 2009–2011 American Community Survey three-year combined data file. Earnings in 2009 and 2010 are adjusted to 2011 dollars using the
Consumer Price Index for all urban consumers. Median earnings are the median of combined data.
SOURCES: U.S. Census Bureau, 2012f; calculations by the authors.
FIGURE 1.7B
Median Earnings of All Workers by Age and Education Level,
2009–2011
Professional Degree
Doctoral Degree
Master’s Degree
Bachelor’s Degree
Associate Degree
Some College,
No Degree
High School
Diploma
Less than a
High School
Diploma
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
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
Median Earnings
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Age
25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64
Earnings
18 EDUCATION PAYS 2013 Part 1: Individual and Societal Benefits
Employment
In 2012, among adults between
the ages of 25 and 64, 67% of high
school graduates, 71% of those with
some college but no degree, 77% of
those with associate degrees, and
82% of those with four-year college
degrees were employed.
– For all groups without any postsecondary
degrees, the percentages employed were 6
points lower in 2012 than they had been in 2007.
The percentage employed for associate degree
holders was 4 percentage points lower in 2012
than in 2007. For those with a bachelor’s degree
or higher, the decline was 2 percentage points.
– The number of employed four-year college
graduates between the ages of 25 and 64
increased from 36.2 million in 2002 to 41.4
million in 2007 and to 43.5 million in 2012.
– Among both associate degree holders and those
with at least a bachelor’s degree, the number of
employed adults between the ages of 25 and
64 increased between 2007 and 2012, while
employment declined for other groups.
– The overall educational attainment in the
population increased between 2002 and 2012.
For example, the total number of adults between
the ages of 25 and 64 without a high school
diploma declined by 1.4 million during this
time period, while the number with at least a
bachelor’s degree grew by 10.1 million.
– In 2012, 18% of individuals ages 65 and older
were in the labor force, ranging from 10% of
those without a high school diploma to 28%
of those with at least a bachelor’s degree. In
contrast, 77% of individuals ages 25 to 64 were
in the labor force, ranging from 61% of those
without a high school diploma to 85% for those
with at least a bachelor’s degree.
FIGURE 1.8A
Civilian Population Ages 25 to 64: Number (in Millions) and Percentage
Employed, Unemployed, and Not in the Labor Force, 2002, 2007, and 2012
NOTE: 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, 2002b, 2007a, and 2012b; calculations by the authors.
FIGURE 1.8B
Labor Force Participation Rates by Age and Education Level, 2012
SOURCES: U.S. Census Bureau, 2012b; calculations by the authors.
Labor Force Participation Rates by Age and Education
Level, 2012
Age
Less than
a High
School
Diploma
High
School
Diploma
Some
College,
No
Degree
Associate
Degree
Bachelor’s
Degree or
Higher Total
25 to 34 68% 79% 80% 86% 88% 82%
35 to 44 69% 80% 82% 87% 88% 83%
45 to 54 63% 77% 80% 85% 88% 80%
55 to 64 43% 60% 65% 69% 75% 65%
Less than a
HS Diploma
High School
Diploma
Some College,
No Degree
Associate
Degree
Bachelor’s
Degree or Higher
61%
82%
77% 74%
85%
10%
20% 22%
15%
28%
46%
59%
73% 76%
66%
60%
80%
100%
40%
20%
0%
Age and Education Level
Labor Force Participation Rate
25 to 64 65 and Older 25 and Older
Other Economic Benefits
Number of Individuals (Millions)
Education Level and Year
2012
2007
2002
2012
2007
2002
2012
2007
2002
2012
2007
2002
2012
2007
2002
0 10 20 30 40 50 60
High School
Diploma
Less than a High
School Diploma
Some College,
No Degree
Associate
Degree
Bachelor´s
Degree or Higher
81%
71%
77%
77%
23%
20%
19%
28.0
27.6
26.3
6%
67%
53%
59%
58%
36%
37%
39% 17.2
18.6
18.3
26% 47.0
46.7
73% 24% 47.9
3%
73% 22%
4%
4%
3%
3%
15% 53.3
2%
14% 49.3
43.2
17.2
15.0
13.5
84%
77%
81%
3% 16%
16%
5%
3%
14%
3%
8%
5%
6%
Employed Unemployed Not in the Labor Force
82%
18%
84%
6%
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 19
FIGURE 1.9A
Unemployment Rates Among Individuals Ages 25 and Older, by Education Level, 1992–2012
Unemployment
SOURCE: Bureau of Labor Statistics, 2013b.
Unemployment Rates Among Individuals Ages 25 and Older, by Education Level, 1992–2012, Selected Years
Unemployment Rate
Year
Less than a
High School Diploma High School Diploma
Some College,
No Degree Associate Degree
Bachelor’s Degree
or Higher
BA/HS
Unemployment Rate Ratio
1992 11.5% 6.8% 6.0% 4.8% 3.2% 0.46
1997 8.1% 4.3% 3.5% 2.7% 2.0% 0.47
2002 8.4% 5.3% 4.8% 4.0% 2.9% 0.55
2007 7.1% 4.4% 3.8% 3.0% 2.0% 0.46
2010 14.9% 10.3% 9.2% 7.0% 4.7% 0.46
2012 12.4% 8.3% 7.7% 6.2% 4.0% 0.48
The unemployment rate for individuals with at least a bachelor’s degree has consistently
been about half the unemployment rate for high school graduates.
– The 4.0% 2012 unemployment rate for individuals ages 25 and
older with at least a bachelor’s degree represented a decline
from the 4.7% peak for this group in 2010. For associate
degree holders, the decline was from 7.0% to 6.2% and for
those with some college but no degree, the unemployment
rate fell from 9.2% in 2010 to 7.7% in 2012.
– The 8.3% 2012 unemployment rate for individuals ages 25 and
older with high school diplomas represented a decline from the
10.3% peak for this group in 2010. For those who are not high
school graduates, the decline was from 14.9% to 12.4%.
– Over the 20 years from 1992 to 2012, the largest gaps between
the unemployment rates for four-year college graduates and
high school graduates were 5.6 percentage points in 2010 and
5.1 points in 2009 and 2011. The smallest gaps were 1.7 to 1.9
percentage points from 1999 through 2001.
– From 1992 through 2012, the difference between the annual
unemployment rate for individuals with some college but no
degree and high school graduates ranged from 0.3 percentage
points in 2003 to 1.1 percentage points in 2010.
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Less than a High School Diploma
High School Diploma
Some College, No Degree
Associate Degree
Bachelor’s Degree or Higher
Unemployment Rate
Year
0%
2%
4%
6%
8%
10%
12%
14%
16%
Other Economic Benefits
20 EDUCATION PAYS 2013 Part 1: Individual and Societal Benefits
Unemployment
In 2012, when the unemployment
rate for 25- to 34-year-olds with
four-year college degrees was 4.1%,
11.2% of high school graduates in
this age range were unemployed.
– The 2012 unemployment rates for 25- to
34-year-olds were 9.6% for those with some
college but no degree and 7.2% for those with
associate degrees.
– In 2012, the unemployment rate for 25- to
34-year-old four-year college graduates was
slightly higher than the 3.9% rate for those ages
45 to 54. However, the unemployment rate for
25- to 34-year-old high school graduates was
11.2%, much higher than the 7.4% rate for those
ages 45 to 54.
– The gaps in unemployment rates by education
level were narrower for Asians than for other
groups. The 2012 unemployment rate for Asian
bachelor’s degree recipients was 70% of that
for high school graduates, compared to 47%
for blacks and Hispanics and 49% for whites.
– The 6.3% unemployment rate for black
four-year college graduates in 2012 was about
70% higher than the 3.7% unemployment
rate for white four-year college graduates.
The 13.4% unemployment rate for black high
school graduates was 79% higher than the
7.5% unemployment rate for white high
school graduates.
– The 7.1 percentage point gap between the
unemployment rates for blacks with at least
a bachelor’s degree and black high school
graduates is larger than the differences within
other racial/ethnic groups, which range from 1.8
percentage points for Asians to 3.9 percentage
points for Hispanics.
FIGURE 1.9B
Unemployment Rates of Individuals Ages 25 and Older, by Age and
Education Level, 2012
FIGURE 1.9C
Unemployment Rates of Individuals Ages 25 and Older, by Race/Ethnicity
and Education Level, 2012
SOURCES: U.S. Census Bureau, 2012b; calculations by the authors.
SOURCES: Bureau of Labor Statistics, 2013b; calculations by the authors.
SOURCES: Bureau of Labor Statistics, 2013b; calculations by
the authors.
Labor Force Participation Rates of Individuals Ages 25
and Older, by Race/Ethnicity and Education Level, 2012
Less than
a High
School
Diploma
High
School
Diploma
Some
College,
No
Degree
Associate
Degree
Bachelor’s
Degree or
Higher
Asian 44% 60% 69% 72% 76%
Black 37% 62% 69% 75% 79%
Hispanic 61% 71% 76% 79% 80%
White 47% 59% 65% 73% 76%
Other Economic Benefits 6.8% 6.1%7.0% 6.3% 4.3%
20.4%
13.4%
11.6%
10.2%
6.3%
11.0%
9.0%
8.0%
8.0%
5.1%
11.4%
7.5%
6.9%
5.4%
3.7%
Less than a
High School
Diploma
High School
Diploma
Some College,
No Degree
Associate
Degree
Bachelor’s
Degree or Higher
Unemployment Rate
Race/Ethnicity and Education Level
0%
5%
10%
15%
20%
25%
Asian Black Hispanic White
15.4%
11.2%
9.6%
7.2%
4.1%
12.1%
8.7%
7.7%
6.0%
3.4%
11.9%
7.4%
6.6%
5.3%
3.9%
10.6%
6.3%
6.5%
5.9%
4.5%
Unemployment Rate
Age and Education Level
0%
5%
10%
15%
20%
25%
25 to 34 35 to 44 45 to 54 55 to 64
Less than a
High School
Diploma
High School
Diploma
Some College,
No Degree
Associate
Degree
Bachelor’s
Degree or Higher
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 21
Job Satisfaction
Among workers ages 30 to 45
with a bachelor’s degree or higher,
56% strongly agree that their
jobs require them to keep learning
new things. Among those with
some college or an associate
degree, 44% strongly agree with
this statement, compared to just
over 30% of those with a high
school diploma.
– The percentage of workers ages 30 to 45 who
report being very satisfied with their work ranges
from 42% of those with less than a high school
diploma and 47% of those with a high school
diploma to 51% of those with a bachelor’s degree
or higher.
– Differences in the percentage of workers who
report being at least moderately satisfied with their
work are smaller, ranging from 83% of those with
less than a high school diploma to 89% of those
with a bachelor’s degree or higher.
ALSO IMPORTANT:
– Over the 40 years from 1972 to 2012, 44% of employed
individuals ages 30 to 45 who report being very
satisfied with their jobs also report being very happy,
while 24% of those who report being moderately
satisfied with their jobs and 17% of those who report
being dissatisfied with their jobs report being very
happy. (National Opinion Research Center, 2013;
calculations by the authors)
– Many factors determine job satisfaction. They include
demographic factors, job characteristics, and earnings.
– Controlling for many individual demographic
characteristics and income, education still has a
significant and positive effect on job satisfaction.
(Oreopoulos & Salvanes, 2011)
FIGURE 1.10A
Sense of Learning New Things on the Job Among Employed Individuals
Ages 30 to 45, by Education Level, 2002, 2006, and 2010
FIGURE 1.10B
Work Satisfaction Rates Among Employed Individuals Ages 30 to 45,
by Education Level, 1972–2012
NOTE: Based on the General Social Survey 1972–2012 cumulative data file with combined
data from each survey year. Includes individuals ages 30 to 45 who were working full time
or part time at the time of the survey. Figure 1.10A reports on the percentage of individuals
who agreed with the following statement: “My job requires that I keep learning new things”
(available in survey years 2002, 2006, and 2010) and Figure 1.10B reports on responses to the
following question: “On the whole, how satisfied are you with the work you do?” (available in
most years from 1972 to 2012). Components may not sum to totals because of rounding.
SOURCE: National Opinion Research Center, 2013.
Bachelor’s
Degree or
Higher
Some College or
Associate
Degree
High
School
Diploma
Less than a
High School
Diploma
Very Satised
Moderately
Satised
40% 41% 39% 38%
42% 47% 48% 51%
83%
88% 87% 89%
Percentage of Individuals
0%
20%
40%
60%
80%
100%
Education Level
Bachelor’s
Degree or
Higher
Some College or
Associate
Degree
High
School
Diploma
Less than a
High School
Diploma
Strongly Agree
Agree
46% 48%
44% 38%
35% 32%
44% 56%
81% 81%
89% 94%
Percentage of Individuals
0%
20%
40%
60%
80%
100%
Education Level
Other Economic Benefits
22 EDUCATION PAYS 2013 Part 1: Individual and Societal Benefits
Social Mobility
Of adults who grew up in the middle
family income quintile, 31% of those
with a four-year college degree
moved up to the top income quintile
between 2000 and 2008, compared
with just 12% of those without a
four-year college degree.
– Of adults who grew up in the bottom family
income quintile, 47% of those without a
bachelor’s degree remained in the bottom
quintile, compared to 10% of those with a
four-year college degree. Three percent of those
without a bachelor’s degree had moved up to the
top quintile, compared to 10% of those with a
four-year college degree.
– Of adults who grew up in the top family income
quintile, 51% of those with a bachelor’s degree
remained in the top quintile, compared with 25%
of those without a four-year college degree. Four
percent of those with a bachelor’s degree had
moved down to the bottom quintile, compared with
13% of those without a four-year college degree.
ALSO IMPORTANT:
– There is geographic variation in upward mobility
within the United States, with less mobility in
metropolitan areas in the Southeast and industrial
Midwest and the highest mobility in metropolitan
areas in the Northeast, Great Plains and West.
(Chetty, Hendren, Kline, & Saez, 2013)
– There is less economic mobility across generations
in the United States than in other developed countries
such as the U.K., France, Germany, Sweden, Italy,
Australia, Finland, Denmark, and Canada. (Pew
Charitable Trusts, 2011)
– The high level of economic inequality in the United
States is widely viewed as an important explanation for
the relatively low level of social mobility in this country.
Other explanations include inequality in childhood
educational opportunities and disparities in the resources
parents at different levels of the income distribution
devote to enrichment activities for their children.
(Krueger, 2012; Corak, 2013; Greenstone et al., 2013)
– Over the past four decades, high-income families
have gone from spending slightly more than four
times as much as low-income families on education
and enrichment activities for their children to spending
nearly seven times as much. (Duncan & Murnane, 2011)
FIGURE 1.11
Family Income Quintiles of Adult Children, by Education and Parents’ Family
Income Quintile, 2000 to 2008
Family Income Quintiles of Adult Children, by Parents’ Family Income Quintile
Parents’
Income Quintile
Family Income Quintile of Adult Children
Lowest Second Third Fourth Highest
Top 8% 10% 19% 23% 40%
Fourth 9% 20% 23% 24% 24%
Third 14% 20% 23% 24% 19%
Second 25% 24% 18% 20% 14%
Bottom 43% 27% 17% 9% 4%
NOTE: “Family income” includes all taxable income (such as earnings, interest, and dividends)
and cash transfers (such as Social Security and welfare) of all family members and has been
adjusted for family size and inflation. “Income for parents” is computed as the mean value
of total family income taken as reported in the Panel Study of Income Dynamics (PSID), 1967
through 1971. “Income for children” is computed as the mean value of total family income
taken as reported in the PSID for the years 2000, 2002, 2004, 2006, and 2008. Percentages may
not sum to 100 because of rounding.
SOURCE: Pew Charitable Trusts, 2012, Figures 3 and 18.
4%
5%
7%
12%
10% 37% 26% 17% 10%
14% 10% 27% 37%
15% 21% 26% 31%
10% 23% 27% 35%
5% 16% 23% 51%
Lowest Second Third Fourth Highest
Parents’ Income Quintile
Percentage of Adult Children
Four-Year College Graduate Adult Children
0% 20% 40% 60% 80% 100%
Bottom
Second
Third
Fourth
Top
Other Economic Benefits
Lowest Second Third Fourth Highest
13%
12%
17%
28%
47% 26% 16% 8%
3%
24% 20% 18% 9%
22% 25% 23% 12%
26% 22% 22% 18%
16% 22% 24% 25%
Parents’ Income Quintile
Percentage of Adult Children
Non-College Graduate Adult Children
0% 20% 40% 60% 80% 100%
Bottom
Second
Third
Fourth
Top
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 23
Pension Plans
– Employer-provided pension coverage has declined
over the past 20 years, with the most rapid
declines occurring in the most recent decade
and for workers without a college education,
particularly those without a high school diploma.
– The percentage of high school graduates
working full time year-round who were offered
pension coverage was 60% in 1991 and 2001,
but had declined to 52% by 2011. The percentage
of full-time workers with a bachelor’s degree
who were offered pension plans was 72%
in 1991, 74% in 2001, and 65% in 2011.
The coverage rate for those with advanced
degrees was 78% in 1991, 79% in 2001,
and 73% in 2011.
– In 2011, the percentage of full-time workers
offered pension plans by their employers who
chose to participate ranged from 77% for those
without a high school diploma to 94% for those
with an advanced degree.
ALSO IMPORTANT:
– In 2011, the percentage of part-time workers (those
who worked at least 20 hours a week for at least 26
weeks but less than full time year-round) offered pension
plans ranged from 20% for those without a high school
diploma and 33% for high school graduates to 46%
for bachelor’s degree recipients and 58% for those
with an advanced degree. (U.S. Census Bureau, 2012a;
calculations by the authors.)
– In 2010, 68% of private sector employees with pension
plans had access only to defined contribution plans, in
which the payout depends on the amount accumulated
in a personal account. Over time, these plans have
become more common than defined benefit plans,
which provide a predetermined income level each year
after retirement. (U.S. Census Bureau, 2012d, Table 655)
– Low earnings levels, which are more common among
individuals with lower education levels, may explain
some decisions not to participate in employer-provided
pension plans that require workers to contribute a
portion of their wages.
SOURCES: U.S. Census Bureau, 1992, 2002a, and 2012a; calculations by the authors.
SOURCES: U.S. Census Bureau, 2012a; calculations by the authors.
FIGURE 1.12A
Employer-Provided Pension Plan Coverage Among Full-Time Year-Round
Workers Ages 25 and Older, by Education Level, 1991, 2001, and 2011
FIGURE 1.12B
Participation Rates in Employer-Provided Pension Plans Among Eligible FullTime
Year-Round Workers Ages 25 and Older, by Education Level, 2011
College-educated workers are more likely than others to be offered pension plans by their
employers. Among those to whom these plans are available, participation rates are higher
for individuals with higher education levels.
Bachelor’s
Degree
Advanced
Degree
Some College,
No Degree
Associate
Degree
High School
Diploma
Less than a
High School
Diploma
77% 86% 88% 89% 92% 94%
Percentage Participating
0%
20%
40%
60%
80%
100%
Education Level
1991 2001 2011
43%
38%
29%
60%60%
52%
66% 66%
59%
68% 70%
63%
72% 74%
65%
78% 79%
73%
Percentage Offered
Education Level and Year
0%
20%
40%
60%
80%
100%
Advanced
Degree
Bachelor’s
Degree
Associate
Degree
Some College,
No Degree
High School
Diploma
Less than a
High School
Diploma
Other Economic Benefits
24 EDUCATION PAYS 2013 Part 1: Individual and Societal Benefits
FIGURE 1.13A
Employer-Provided Health Insurance Coverage Among Full-Time Year-Round
Workers Ages 25 and Older, by Education Level, 1991, 2001, and 2011
FIGURE 1.13B
Employer-Provided Health Insurance Coverage Among Part-Time Workers
Ages 25 and Older, by Education Level, 1991, 2001, and 2011
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.
– Between 1991 and 2011, health insurance coverage
declined by 15% (10 percentage points) for high
school graduates working full time year-round. The
coverage rate declined from 65% in 1991 to 62% in
2001 and to 55% in 2011.
– Between 1991 and 2011, health insurance coverage
declined by 8% (6 percentage points) for four-year
college graduates without advanced degrees
working full time year-round. The coverage rate
declined from 75% in 1991 to 74% in 2001 and to
69% in 2011.
– In 1991, 61% of advanced degree holders, 45%
of bachelor’s degree holders, and 36% of high
school graduates working part time were covered
by employer-provided health insurance. By 2011,
those percentages had declined to 48%, 39%,
and 27%, respectively.
ALSO IMPORTANT:
– In 2011, hospitals in the U.S. provided about $41.1 billion
in care for which they were not compensated. This cost
fell indirectly on federal and state governments and
insured patients. (American Hospital Association, 2012)
– In 2011, when 18% of adults ages 18 and older were
not covered by health insurance at any time during the
year, only 9% of those with a bachelor’s degree or higher
were not covered. This was the case for 15% of those
with associate degrees, 18% of those with some college
but no degree, and 21% of high school graduates. (U.S.
Census Bureau, 2012h, Table HI01)
– In 2011, when 30% of adults ages 18 and older were
covered by government health care plans, 20% of adults
with a bachelor’s degree or higher, 25% of those with
an associate degree, 27% of those with some college
but no degree, and 36% of high school graduates had
government coverage. (U.S. Census Bureau, 2012h,
Table HI01)
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, 1992, 2002a, and 2012a; calculations by the authors.
1991 2001 2011
52%
65% 69% 71% 75%
83%
45%
62% 66% 69%
74% 76%
34%
55% 60% 64%
69% 73%
Education Level and Year
Advanced
Degree
Bachelor’s
Degree
Associate
Degree
Some College,
No Degree
High School
Diploma
Less than a
High School
Diploma
Percentage Covered
0%
20%
40%
60%
80%
100%
1991 2001 2011
25%
36% 34%
39%
45%
61%
22%
35% 38% 43%
49%
57%
16%
27% 30% 32%
39%
48%
Education Level and Year
Advanced
Degree
Bachelor’s
Degree
Associate
Degree
Some College,
No Degree
High School
Diploma
Less than a
High School
Diploma
Percentage Covered
0%
20%
40%
60%
80%
100%
Other Economic Benefits
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 25
FIGURE 1.14A
Percentage of Individuals Ages 25 and Older Living in Households in Poverty,
by Household Type and Education Level, 2011
FIGURE 1.14B
Living Arrangements of Children Under 18 Years of Age, by Poverty Status
and Highest Education of Either Parent, 2011
NOTE: The numbers in parentheses on the x-axis represent each household type as a percentage
of all households.
SOURCES: U.S. Census Bureau, 2012a; calculations by the authors.
SOURCE: U.S. Census Bureau, 2011d, Table C-3.
Poverty
– Individuals living in households headed by
unmarried females with children under 18
have particularly high poverty rates. This family
structure accounts for 6% to 9% of households
headed by individuals with less than a four-year
college degree, but only 3% of households
headed by four-year college graduates. (Not
shown in graph; U.S. Census Bureau, 2012a;
calculations by the authors.)
– The 12% poverty rate for bachelor’s degree
recipients living in families headed by unmarried
females in 2011 was two and a half times as
high as the overall poverty rate for those with a
bachelor’s degree or higher, but was less than
a third of the 40% poverty rate for high school
graduates living in similar families.
– The 2011 poverty rate for all associate degree
recipients was 8%, compared to 11% for
individuals with some college but no degree
and 14% for high school graduates with no
college experience.
– In 2011, the percentage of all children under age
18 who lived with both parents increased with
the highest education level of either parent.
ALSO IMPORTANT:
– The official poverty threshold varies with family
size, number of children under 18, and senior citizen
status. In 2011, a family of four with two children was
considered poor if it had an income below $22,811.
The poverty threshold was $11,702 for a single person
under age 65 and $18,123 for a family of three with two
children. (U.S. Census Bureau, 2011e)
– The poverty threshold is the official measure of poverty
and is slightly different from the poverty guidelines
used to determine eligibility for public programs. In
2011, the poverty guideline for families of four issued
by the Department of Health and Human Services
was $22,350. (U.S. Department of Health and Human
Services, 2011)
The 5% poverty rate in 2011 for bachelor’s degree recipients was about one-third of the
14% poverty rate for high school graduates.
69% 24% 7%
42% 47% 11%
77% 17% 6%
53% 31% 16%
59% 26% 14%
67% 23% 10%
86% 9%
5%
3%
92%
5%
Percentage of Children Under 18
0% 20% 40% 60% 80% 100%
Living with
Mothers Only
Advanced Degree
Bachelor’s Degree
Some College or
Associate Degree
High School Diploma
Less than a High
School Diploma
100% of Poverty
and Above
Below 100% of Poverty
All Children
Living with Fathers Only
or Other Living Arrangements
Living with
Both Parents
Poverty Status and Parents’ Education Level
Highest Education
of Either Parent
Poverty
Status
58%
40%
33%
24%
12%
29%
11% 7% 4% 2%
28%
14% 11% 8% 5%
Less than a
High School
Diploma
High School
Diploma
Some College,
No Degree
Associate
Degree
Bachelor’s
Degree or Higher
Household Type and Education Level
Married Couples with All Households
Related Children
Under 18 (25%)
Female Householders with
Related Children
Under 18 (6%)
Percentage in Poverty
0%
20%
40%
60%
80%
100%
Other Economic Benefits
26 EDUCATION PAYS 2013 Part 1: Individual and Societal Benefits
Public Assistance Programs
SOURCES: U.S. Census Bureau, 2012a; calculations by the authors.
FIGURE 1.15
Percentage of Individuals Ages 25 and Older Living in Households Participating in Selected Public Assistance Programs, by Education
Level, 2011
In 2011, the percentages of high school graduates ages 25 and older living in households
receiving benefits from SNAP (the Supplemental Nutrition Assistance Program — formerly
known as Food Stamps) and from the free and reduced-price school lunch program were
about six times as high as the percentages of those with a bachelor’s degree or higher
participating in these programs.
– In 2011, about a quarter of adult high
school graduates and 43% of those
without a high school diploma lived
in households that received Medicaid
coverage. Participation rates were 19%
for those with some college but no
degree, 17% for those with an associate
degree, and 9% for those with at least a
four-year college degree.
ALSO IMPORTANT:
– Medicaid provides health insurance to
many low-income families and other eligible
individuals. The National School Lunch
Program provides free or reduced-price
lunches to eligible school children. SNAP
subsidizes food purchases for eligible
low-income households.
– The participation rates for Medicaid, SNAP,
and the school lunch program were higher in
2011 than in 2008 and 2005, with the largest
increases seen in adults without a high school
diploma and the smallest increases seen in
those with a four-year college degree. (Baum
& Ma, 2007; Baum, Ma, & Payea, 2010)
– In 2008, 28.4 million participants received an
annual average of $1,218 in SNAP benefits.
Thirty-one million children received free or
reduced-price school lunches, at a total cost
of $8.3 billion to the federal government. In
2006, 57.8 million participants received a total
of $269.9 billion in Medicaid benefits. (U.S.
Census Bureau, 2010c, Tables 144 and 558)
– A 2009 study from the RAND Corporation
estimated that the discounted lifetime
savings to taxpayers from reduced spending
on social programs resulting from the
increase from a high school diploma to
some college ranged from $9,000 per white
man to $22,000 per black woman (in 2002
dollars). Estimated reductions resulting
from the increase from some college to a
bachelor’s degree range from $9,000 per
white man to $32,000 per black woman.
(Carroll & Erkut, 2009, Tables 7.3 and 7.4)
43%
19% 17%
9%
24% 22%
9% 7%
2%
11%
24%
10% 7%
2%
12%
Less than a
High School Diploma
High School Diploma Some College,
No Degree
Associate Degree Bachelor’s Degree
or Higher
0%
10%
20%
30%
40%
50%
Medicaid School Lunch SNAP
Percentage Participating
Public Assistance Program
Other Economic Benefits
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 27
Smoking rates among college graduates have been significantly lower than smoking rates
among other adults since information about the risks of smoking became public.
– Smoking rates in the United States increased in
the 1940s, peaked at 46% in 1957, and began a
steady decline in the 1960s.
– College graduates were at least as likely as others
to smoke before the medical consensus on the
dangers of smoking became clear. By 1970, when
information was widespread and clear public
warnings were mandatory, the smoking rate
among college graduates had declined to 37%,
while 44% of high school graduates smoked. This
gap increased to 13 points in 1982, to 16 points in
1992, and to 17 points in 2012.
– In 2012, only 8% of individuals with at least a
bachelor’s degree smoked, compared to 20% of
those with some college or an associate degree
and 25% of high school graduates and of those
without a high school diploma.
– Among smokers with at least some college
experience, almost half attempted to stop
smoking in 2012. Among those with high school
diplomas, 11% out of the 25% who smoked
tried to quit.
ALSO IMPORTANT:
– Statistical analysis suggests that higher levels of
education are not just correlated with lower smoking
rates, but also cause declines in smoking. (de Walque,
2004; Grimard & Parent, 2007)
– In their analysis of the positive relationship between
education and health outcomes, much of which
is explained by differences in behaviors, Cutler
and Lleras-Muney (2010) find that income, health
insurance, and family background account for about
30% of the differences, but knowledge and measures
of cognitive ability explain an additional 30%, with
social networks explaining another 10% of the
differences. The authors argue that “more important
than specific knowledge is how one thinks.” They find
that much of the difference seems to be driven by
the fact that education raises cognition, which in turn
improves behavior.
Smoking
FIGURE 1.16A
Smoking Rates Among Individuals Ages 25 and Older, by Education Level,
1940–2012
FIGURE 1.16B
Distribution of Smoking Histories Among Individuals Ages 25 and Older, by
Education Level, 2012
NOTE: Percentages may not sum to 100 because of rounding.
SOURCES: National Center for Health Statistics, 2013; calculations by the authors.
NOTE: Data for 2001 through 2005 are three-year moving averages.
SOURCES: de Walque, 2004; National Center for Health Statistics, 2002–2013; calculations
by the authors. Smoking Rate
Year
1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2012
0%
20%
40%
60%
Less than a High School Diploma
High School Diploma
Some College or Associate Degree
Bachelor’s Degree or Higher
Health Benefits
53% 49% 52% 57% 68% 72%
10%
14%
11%
14%
10%
11%
9%
9% 5%
4%
3%
3%
22% 26% 27%
25%
23% 22%
Percentage of Individuals
0%
20%
40%
60%
80%
100%
Education Level
Advanced
Degree
Bachelor’s
Degree
Associate
Degree
Some College,
No Degree
High School
Diploma
Less than a
High School
Diploma
Never Smoked
Former Smoker
Current Smoker Who Tried to Quit in the Past 12 Months
Current Smoker Who Did Not Try to Quit in the Past 12 Months
28 EDUCATION PAYS 2013 Part 1: Individual and Societal Benefits
Exercise
Among young adults between
the ages of 25 and 34, 68% of
four-year college graduates and
40% of high school graduates
reported exercising vigorously
at least once a week in 2012;
17% of four-year college graduates
and 20% of high school graduates
reported light or moderate exercise.
– Among 55- to 64-year-olds, 52% of high school
graduates reported some exercise and 25%
reported exercising vigorously; 80% of four-year
college graduates reported some exercise and
53% reported vigorous exercise.
– In 2011, 63% of four-year college graduates and
38% of high school graduates reported meeting
the federal guidelines for physical activity of at
least 2½ hours a week of moderate or 1¼ hours
of intensive aerobic activity.
ALSO IMPORTANT:
– Numerous studies investigating the relationship
between education and health support the idea that
the skills, attitudes, and thought patterns fostered
by education lead to more responsible health-related
behaviors. (Mirowsky & Ross, 2003)
– Improvements in health are associated with each
additional year of schooling, but in contrast to the
relationship between education and wages, there
does not appear to be a “sheepskin” effect with the
completion of a degree having a bigger impact than
just the completion of an additional year of education.
(Cutler & Lleras-Muney, 2006)
– Additional health care costs in the United States in
2000 attributable to physical inactivity have been
estimated at about $200 billion. (Sari, 2009)
SOURCES: National Center for Health Statistics, 2013; calculations by the authors.
FIGURE 1.17B
Age-Adjusted Percentage Distribution of Leisure-Time Aerobic Activity
Levels Among Individuals Ages 25 and Older, by Education Level, 2011
NOTE: “Inactive” is participating in no leisure-time aerobic
activity that lasted at least 10 minutes. “Insufficiently Active”
is participating in aerobic activities for at least 10 minutes
but less than 150 minutes per week. “Sufficiently Active,”
which meets 2008 federal physical activity guidelines, is
participating in moderate-intensity leisure-time physical
activity at least 150 minutes per week, or in vigorous-intensity
leisure-time physical activity at least 75 minutes per week,
or an equivalent combination. Percentages shown were ageadjusted
using the projected 2000 U.S. population provided
by the U.S. Census Bureau as the standard population. Age
adjustment was used to allow comparisons among various
population subgroups that have different age distributions.
Percentages may not sum to 100 because of rounding.
SOURCE: Centers for Disease Control and Prevention, 2012,
Table 29.
FIGURE 1.17A
Exercise Rates Among Individuals Ages 25 and Older, by Age and Education
Level, 2012
Bachelor’s
Degree or
Higher
Some College or
Associate
Degree
High
School
Diploma
Less than a
High School
Diploma
29% 38%
48% 63%
17%
21%
30%
22%
43%
19%
54%
17%
Inactive
Insufciently Active
Sufciently Active
(met guidelines)
Percentage of Individuals
0%
20%
40%
60%
80%
100%
Education Level
Health Benefits
Percentage of Individuals
0% 20% 40% 60% 80% 100%
Age and Education Level
25 to 34 35 to 44 45 to 54 55 to 64 65 and older
Less than a High School Diploma
High School Diploma
Some College, No Degree
Associate Degree
Bachelor’s Degree or Higher
Vigorous Light/Moderate
39%
40%
53%
56%
68%
28%
40%
50%
54%
65%
23%
33%
42%
44%
59%
34%
38%
53%
12%
17%
25%
24%
39%
18% 22%
26%
19%
20%
18%
20%
17%
23%
20%
20%
20%
19%
22%
25%
23%
28%
24%
25% 27%
32%
29%
27%
33%
32%
36%
33%
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 29
Obesity
In 2007–2010, when 35% of all men
and 36% of all women ages 25 and
over were defined as obese, 28%
of men and 26% of women with
bachelor’s degrees were obese.
– Among those without four-year college degrees,
higher levels of education were not associated
with lower levels of obesity in 2007–2010.
– Obesity rates increased dramatically from
1988–1994 to 2007–2010 for both men and
women at all levels of education. The largest
increases were for those with some college or
an associate degree.
– In 2007–2010, 11% of boys and 7% of girls
ages 2–19 whose household head had at least
a bachelor’s degree were obese. Obesity rates
were much higher for children whose parents had
lower levels of education.
– The gap between the obesity rates of girls whose
household head had a high school diploma and
those whose household head had at least a
bachelor’s degree increased from 7 percentage
points (12% vs. 5%) in 1988–1994 to 14
percentage points (21% vs. 7%) in 2007–2010.
ALSO IMPORTANT:
– At least a portion of the correlation between obesity and
education levels is likely due to income and the prices of
different types of food. Differences in exercise patterns
and in dietary knowledge and choices are also relevant.
– Some estimates suggest the additional health care
cost attributable to obesity was about $361 per adult
in 2008; the total cost could increase fourfold by 2018
if the current rate of increase in obesity continues.
(United Health Foundation, 2009)
– More sophisticated statistical estimates of the health
care costs of obesity are higher. Cawley and
Meyerhoefer (2012) find that obesity raises annual
medical costs by an average of $2,826 (in 2005 dollars).
They estimate the annual cost of treating obesity in the
adult population as $168.4 billion, or 16.5% of national
spending on medical care.
– Research indicates that disparities in obesity by
socioeconomic status increase with age. One estimate
suggests that an additional year of maternal education
reduces obesity by an average of 1.2 percentage points
and that this effect increases by 0.07 points per year of
age. (Baum & Ruhm, 2009)
FIGURE 1.18A
Age-Adjusted Obesity Rates Among Adults Ages 25 and Older, by Gender
and Education Level, 1988–1994 and 2007–2010
NOTE: Data from 1988 to 1994 were combined to generate estimates for 1988–1994; data from
2007 to 2010 were combined to generate estimates for 2007–2010. Obesity is defined as body
mass index (BMI) of 30 or higher, equivalent to being at least about 30 pounds overweight at
average heights.
SOURCE: National Center for Health Statistics, 2011a, Figure 37.
* For boys from households with at least a bachelor’s degree, the variation within the group in
1988–1994 is too large to generate a reliable estimate.
NOTE: Obesity is defined as a BMI at or above the 95th percentile for children of the same
gender and age in months, based on the 2000 CDC growth charts for the United States.
SOURCE: National Center for Health Statistics, 2011a, Figure 25.
FIGURE 1.18B
Obesity Rates Among Children and Adolescents Ages 2 to 19, by Gender and
Highest Household Education Level, 1988–1994 and 2007–2010
15%
11%
9%
11%
12%
9%
5%
24%
19%
18%
11%
7%
14%
22%
21%
Obesity Rate
Bachelor’s Degree
or Higher *
Some College or
Associate Degree
High School
Diploma
Less than a High
School Diploma
Bachelor’s Degree
or Higher
Some College or
Associate Degree
High School
Diploma
Less than a High
School Diploma
1988–1994
2007–2010
Gender and Household Education Level
0% 10% 20% 30% 40% 50%
Girls Boys
23%
33%
22%
37%
22%
42%
16%
28%
21%
35%
33%
44%
28%
39%
25%
40%
17%
26%
27%
36%
Obesity Rate
All
Bachelor’s Degree
or Higher
Some College or
Associate Degree
High School
Diploma
Less than a High
School Diploma
All
Bachelor’s Degree
or Higher
Some College or
Associate Degree
High School
Diploma
Less than a High
School Diploma
1988–1994
2007–2010
Gender and Education Level
0% 10% 20% 30% 40% 50%
Women Men
Health Benefits
30 EDUCATION PAYS 2013 Part 1: Individual and Societal Benefits
Other Individual and Societal Benefits
NOTE: Figures 1.19A, 1.19B and the table are based on the 2003–2012 American Time Use Surveys (ATUS) and include mothers ages 25 and older who have
at least one “own child” in the household. “Play activities” include sports, arts and crafts, and general play with household children. “Management activities”
include attending events, traveling, planning activities for children, picking up/dropping off children, and waiting for/with household children.
SOURCES: Bureau of Labor Statistics, 2013; calculations by the authors.
Parents and Children
FIGURE 1.19A
Total Amount of Time (in Minutes) Mothers Spend per Day on Children
Under the Age of 18, by Employment Status and Education Level, 2003–2012
FIGURE 1.19B
Total Amount of Time (in Minutes) Mothers Spend per Day on Children’s Activities, by Type of Activity, Age of
Youngest Child, Mother’s Employment Status and Education Level, 2003–2012
Among both those who are employed and those who are not, the amount of time mothers
spend on their children’s activities increases with levels of education.
– Employed mothers with four-year
college degrees report spending about
51% more time (113 minutes vs. 75
minutes per day) on their children’s
activities than employed mothers who
are high school graduates. Among those
who are not employed, the difference
is about 42% (188 minutes vs. 132
minutes per day).
– The amount of time mothers with
children under the age of 3 report
playing with their children increases with
level of education. When children are
between the ages of 3 and 5, mothers
with bachelor’s degrees report more play
time, but those with some college or an
associate degree spend about the same
amount of time as high school graduates
playing with their children.
– For older children, mothers spend more
time facilitating children’s outside and
enrichment activities than on other
child-related activities. Differences
between those with bachelor’s degrees
and those without are large, especially
among mothers who are not employed.
ALSO IMPORTANT:
– Kalil, Ryan, and Corey (2012) find that “highly
educated mothers not only spend more
time in active child care than less educated
mothers, but that they alter the composition
of that time to suit children’s developmental
needs more than less educated mothers.”
Percentage of Mothers Who Are Employed, by Age
of Youngest Child and Mother’s Education Level,
2003–2012
Age of Youngest Child
Mother’s
Education
Level
Under
18
Under
3
Between
3 and 5
Between
6 and 13
Between
14 and 17
Less than a
High School
Diploma
43% 32% 41% 48% 53%
High School
Diploma 65% 51% 59% 70% 76%
Some
College or
Associate
Degree
72% 61% 72% 76% 80%
Bachelor’s
Degree or
Higher
75% 67% 75% 79% 82%
61
75
87
113
124 132 141
188
97 95 102
132
Less than a High
School Diploma
High School
Diploma
Some College or
Associate Degree
Bachelor’s
Degree or Higher
Employment Status
Unemployed or All
Not in the Labor Force
Employed
Amount of Time (in Minutes)
0
40
80
120
160
200
Employed Unemployed
or Not in the
Labor Force
All Employed Unemployed
or Not in the
Labor Force
All Employed Unemployed
or Not in the
Labor Force
All
39
30
11
50
36
52 55
88
28
41 45
63
6
18 18 21 24 29 30
38
16
22 21 25 20 24 29
39
30 29
32
54
26 26 30
42
0
20
40
60
80
100
Amount of Time (in Minutes)
Age of Youngest Child and Mother’s Employment Status
Under 3, Play Activities Between 3 and 5, Play Activities Between 6 and 13, Management Activities
Less than a High
School Diploma
High School
Diploma
Some College or
Associate Degree
Bachelor’s
Degree or Higher
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 31
Civic Involvement
FIGURE 1.20B
Percentage of Individuals Ages 25 and Older Who Volunteered and the
Median Number of Hours Volunteered, by Education Level, 2012
FIGURE 1.20A
Understanding of Political Issues Among Individuals Ages 25 and Older, 2012
NOTE: Volunteers are defined as individuals who performed unpaid volunteer activities for
organizations during the year ending September 2012.
SOURCE: Bureau of Labor Statistics, 2013c, Tables 1 and 2.
9%
(52 hours)
17%
(50 hours)
29%
(50 hours)
42%
(52 hours)
Percentage Volunteering
Education Level
Bachelor’s Degree
and Higher
Some College or
Associate Degree
High School
Diploma
Less than a
High School Diploma
0%
10%
20%
30%
40%
50%
– Among those with a high school diploma, 30%
of adults reported understanding nothing or only
a little about political issues. Fourteen percent of
those with some college or an associate degree
and 11% of four-year college graduates gave
this response.
– The percentage of four-year college graduates
who donate their time to organizations is over
twice as high as the percentage of high school
graduates who volunteer.
– Among adults with at least a bachelor’s degree,
42% volunteered from Sept. 1, 2011, through
Sept. 1, 2012, and the median amount of time
they spent volunteering was 52 hours. The 29% of
adults with some college or an associate degree,
the 17% of high school graduates, and the 9%
of adults without a high school diploma who
volunteered gave similar amounts of their time.
ALSO IMPORTANT:
– As is the case with most of the indicators included
in this report, the correlation seen here should not
necessarily be interpreted as causation. Personal
characteristics may make people more likely both to
pursue higher education and to volunteer. However,
statistical analysis suggests that the actual increments
in volunteer activity attributable to increased education
are similar to those described here. Enrolling in college
significantly increases the likelihood of volunteering,
controlling for other demographic characteristics. (Dee,
2004; Oreopoulos & Salvanes, 2011)
– At each education level, within each age group, and
within each employment category, higher percentages
of women than of men volunteered. Overall, 24% of
men and 30% of women ages 25 and older volunteered
in 2011–2012. (Bureau of Labor Statistics, 2013c, Table 1)
– Volunteering was most common among the 35–44 age
group (32%), and least common among those ages 20
to 24 (19%). (Bureau of Labor Statistics, 2013c, Table 1)
NOTE: Figure 1.20A reports on responses to the following question: “How good is your
understanding of the important political issues facing our country?” Percentages may not sum
to 100 because of rounding.
SOURCE: National Opinion Research Center, 2013, 2012 Experiment Topic Module.
Among adults ages 25 and older, 45% of those with at least a bachelor’s degree, 34% of
those with some college or an associate degree, 21% of high school graduates and only 15%
of those without a high school diploma reported understanding quite a bit or a great deal
about the political issues facing our country.
Other Individual and Societal Benefits
46% 32% 13%
9%
22% 49% 18%
5% 52% 25% 9%
3%
2%
8%
8%
10%
1%
44% 35% 10%
Percentage of Individuals
0% 20% 40% 60% 80% 100%
Bachelor’s Degree
or Higher
Some College or
Associate Degree
High School Diploma
Less than a High
School Diploma
None A Little Some Quite a Bit A Great Deal
Education Level
32 EDUCATION PAYS 2013 Part 1: Individual and Societal Benefits
Voting
FIGURE 1.21A
Voting Rates Among U.S. Citizens, by Age and
Education Level, 2010 and 2012
FIGURE 1.21B
Percentage Distribution of Voting Patterns of U.S.
Citizens in the 2012 Presidential Election, by Age
and Education Level
NOTE: “Not registered” includes both those who reported that they were not registered and those who did not respond to the registration question. Percentages
may not sum to 100 because of rounding.
SOURCES: U.S. Census Bureau, 2010d, 2012i, Table 5; calculations by the authors.
In the 2012 presidential election, the voting rate of 25- to 44-year-old four-year college
graduates (73%) was 1.7 times as high as the voting rate of high school graduates (42%) in
the same age group. In the 2010 election, 25- to 44-year-old four-year college graduates were
twice as likely to vote as high school graduates in the same age group.
– At all levels of education, voting rates
increase with age, but the increase
is generally greater for those with
lower levels of education. In 2012,
the voting rate for 65- to 74-year-old
high school graduates was 1.6 times
the rate for 25- to 44-year-old high
school graduates. For four-year college
graduates, the voting rate was 1.2
times as high for the older group as
for the younger group.
– In 2012, the percentage of citizens
who were registered but did not vote
ranged from 3% to 4% for four-year
college graduates ages 45 and older
to 15% for those ages 75 and older
without a high school diploma.
– Within each age group, registration
rates increase with education level.
In 2012, the percentage of citizens not
registered to vote (or not responding to
the registration question) ranged from
13% for four-year college graduates
between the ages of 65 and 74 to 69%
for those between the ages of 18 and
24 without a high school diploma.
ALSO IMPORTANT:
– The highest overall voting rate in presidential
elections since 1972 was 65% in 1992. In 2008 and
2012, 64% and 62% of citizens ages 18 and older
voted, respectively. The highest voting rate among
four-year college graduates was in 1992 (85%), but
the 1972 presidential election saw the highest voting
rates for those without a bachelor’s degree. (U.S.
Census Bureau, 2012i, Historical CPS Time Series
Tables, Table A-2)
Bachelor’s Degree or Higher
Some College or Associate Degree
High School Diploma
Less than a High School Diploma
Bachelor’s Degree or Higher
Some College or Associate Degree
High School Diploma
Less than a High School Diploma
Bachelor’s Degree or Higher
Some College or Associate Degree
High School Diploma
Less than a High School Diploma
Bachelor’s Degree or Higher
Some College or Associate Degree
High School Diploma
Less than a High School Diploma
Bachelor’s Degree or Higher
Some College or Associate Degree
High School Diploma
9% 23% Less than a High School Diploma
15% 29%
27% 50%
33% 63%
15%
25% 42%
38% 58%
51% 73%
26% 39%
44% 59%
58%
69%
72%
80%
39% 53%
54%
69%
78%
80%
69%
78%
84%
58%
26%
68%
75%
40%
58%
67%
77%
18 to 24 25 to 44 45 to 64 65 to 74 75 and Over
0% 20% 40% 60% 80% 100%
Age and Education Level
2010 2012
Voting Rate
23% 8% 69%
29% 13% 58%
50% 14% 36%
63% 12% 26%
26% 14% 60%
42% 14% 44%
58% 13% 29%
73% 8% 19%
39% 13% 48%
59% 10% 31%
72% 7% 20%
80% 15%
4%
53% 12% 35%
69% 7% 24%
78% 17%5%
84% 13%
54% 15% 31%
69% 10% 21%
78% 15%7%
80% 15%
3%
4%
Voted Registered, No Vote Not Registered
0% 20% 40% 60% 80% 100%
Age and Education Level
Percentage of U.S. Citizens
18 to 24 25 to 44 45 to 64 65 to 74 75 and Over
Other Individual and Societal Benefits
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 33
Part 2:
The Distribution of the Benefits: Who Participates and
Succeeds in Higher Education?
Participation and success rates in higher education differ
considerably among demographic groups. Although the gaps
in college enrollment rates across racial/ethnic groups have
narrowed over time, the gaps between the least privileged youth
and their more affluent peers have grown. The percentage of
high school graduates from the lowest family income quintile
enrolling immediately in college has been stagnant for over a
decade, while participation rates for middle- and upper-income
youth have continued to increase.
When they do enroll in college, students from low-income families
are less likely than others to enroll in four-year institutions and
particularly unlikely to enroll in the selective institutions for which
they would likely qualify. Moreover, outcomes are highly correlated
with family incomes. The percentage of enrolling students from
the highest family income quintile earning bachelor’s degrees
within six years is twice as high as the percentage from the
lowest family income quintile achieving this outcome. And the
percentage of those from the least affluent families leaving school
without a credential is over twice as high as the percentage of
those from the most affluent families experiencing this outcome.
While international comparisons receive more attention, there
is considerable variation in educational attainment across
states in the U.S. These differences are likely explained by a
combination of factors, including demographics and financing
patterns. Financing patterns are also important to international
comparisons. As Figure 2.12 indicates, the United States relies
relatively less on public financing and more on household
financing than most other developed countries.
Documenting the different patterns observed among segments
of the population is an important first step toward generating
awareness that a problem exists and finding solutions. But
careful interpretation of the evidence and in-depth analysis
of the causes of differences in educational attainment are
prerequisites to real progress. A shortage of money may
interfere with educational opportunities, but money cannot
remove all the barriers faced by many individuals.
As the data reported in Part 1 of Education Pays reveal,
adults with some college but no degree earn more and have
different life experiences than high school graduates. They do
not, however, fare as well as those who earn degrees. There
is a growing and valid concern about the detrimental effect
on individuals and the wasted resources resulting from low
degree completion rates. The indicators that follow rely on a
variety of sources to provide multiple views of the educational
experiences of different groups of students.
The number of postsecondary certificates awarded doubled
between 2001 and 2011, and over 40% of the credentials
awarded in 2011 were associate degrees or short-term
certificates, as opposed to bachelor’s degrees. Our goal in
highlighting gaps in educational attainment is not to suggest
that everyone needs a bachelor’s degree or that success in life
should be defined by education level.
Individual preferences, goals, and capabilities differ. However, the
differences across demographic groups documented here are
unsettling. The gap between students from high- and low-income
backgrounds in degree attainment is much larger than the gap in
college enrollment. The enrollment and degree attainment rates of
women have far outpaced those of men in recent years, and black
and Hispanic students have not caught up with white students.
The data on college enrollment and completion reported in the
following pages are more disturbing in light of the benefits for
individuals and for society documented in Part 1 of Education
Pays. Limited participation in postsecondary education seriously
constrains individual opportunities and living standards. Society
as a whole suffers from lower levels of civic engagement
and from unnecessary barriers to the success of the next
generation, in addition to a loss of productivity and output,
when individuals miss out on educational opportunities.
The indicators on the following pages describe pressing
problems for our nation. We hope readers will use this
information to work toward constructive solutions.
34 EDUCATION PAYS 2013 Part 2: Distribution of Benefits
College Enrollment by Income
– From 2001 through 2009, high school graduates
in the lowest income quintile went to college at
about the same rate as those from families in
the second quintile. However, the gap between
these two groups grew from 3 percentage points
in 2009 to 6 points in 2012.
– Between 1992 and 2002, the college enrollment
rate grew most rapidly for students from the
lowest family-income quintile, increasing 8
percentage points (19%) from 42% to 50%,
while remaining relatively stable for higherincome
students.
– Between 2002 and 2012, the enrollment rate
grew only slightly at the bottom and the top of
the income distribution, with more rapid growth
for middle-income students, particularly those
in the third income quintile. In 2012, 65% of this
group enrolled in college immediately after high
school, an increase from 55% a decade earlier.
ALSO IMPORTANT:
– Because of the difficulty of accounting for young people
who leave their parents’ homes, the Census data on
which Figure 2.1 is based are likely to underestimate
the gaps in enrollment rates. When high school
graduates move away but do not enroll in college
they form their own households. This pattern is more
common among low-income households and these
nonenrollees are not included.
– Immediate enrollment rates of high school graduates
do not capture students who wait more than a year
after graduation to continue their education, a pattern
more common among lower-income students than
among those from higher income backgrounds.
College Enrollment
FIGURE 2.1
Postsecondary Enrollment Rates of Recent High School Graduates by Family
Income, 1987 to 2012
NOTE: Based on enrollment in college within 12 months of high school graduation. Income
quintiles are defined in terms of all households. In 2012, the upper income limits of the
quintiles were: lowest, $18,300; 2nd, $34,059; 3rd, $55,253; and 4th, $90,500. High school
graduates are not evenly distributed among income quintiles because graduation rates
are lower among students from low-income backgrounds. Enrollment rates reflect moving
averages.
SOURCE: U.S. Census Bureau, 2013.
Postsecondary Enrollment Rates of Recent High School Graduates by Family Income
In 2012, when about 82% of high school graduates from families with incomes above $90,500
enrolled immediately in college, 65% of those from the middle income quintile ($34,060 to
$55,253) and 52% of those from families with incomes below $18,300 enrolled.
Income Quintile 1987 1992 1997 2002 2007 2012
Percentage
Point Change
Between 1987
and 2012
Lowest 37% 42% 47% 50% 54% 52% + 15
2nd 35% 46% 43% 52% 55% 58% + 23
3rd 47% 53% 62% 55% 62% 65% + 18
4th 60% 65% 68% 65% 69% 71% + 11
Highest 73% 78% 81% 78% 80% 82% + 9 Enrollment Rate
Year
1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2012
0%
20%
40%
60%
80%
100%
Lowest
Income
Quintile
3rd Income
Quintile
4th Income
Quintile
Highest
Income
Quintile
2nd Income
Quintile
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 35
College Enrollment by Race/Ethnicity
The gaps between the college
enrollment rates of black and
Hispanic high school graduates
and white high school graduates
narrowed considerably between
2001 and 2011. In 2011, 70% of
white, 66% of black, and 62% of
Hispanic high school graduates
enrolled in college within a year of
completing high school.
– In 2001, when 65% of white recent high school
graduates enrolled in college, only 56% of black
students and 49% of Hispanic students followed
this path within one year.
– Although these gaps have also narrowed over the
past decade, 44% of all white 18- to 24-year-olds
were postsecondary students in 2011, while only
36% of blacks and 31% of Hispanics in this age
range were enrolled.
– Differences in high school graduation rates
account for part of the difference between the
enrollment rates graphed in Figure 2.2A and
Figure 2.2B. In 2010, 89% of whites, 83% of
blacks, and 73% of Hispanics between the ages
of 18 and 24 were high school graduates (NCES
2012a, Table 213).
ALSO IMPORTANT:
– Blacks compose about 15% of the 18- to 24-year-old
population, and Hispanics represent about 18%.
– About 1.9% of blacks, 1% of Hispanics, and 0.2% of
whites between the ages of 18 and 24 are in prison.
These individuals are excluded from the population
reported on in Figures 2.2A and 2.2B.
(SOURCES: Bureau of Justice Statistics, 2012, Table 7; U.S.
Census Bureau, 2012c, Table 10.)
– Postsecondary enrollment rates are higher for Asians
than for other racial/ethnic groups. In fall 2011, when
71% of white recent high school graduates enrolled
immediately in college, 88% of Asians continued their
education. Two-thirds of Asians ages 18 to 24 were
enrolled in postsecondary institutions in 2011. Figure 2.2A shows the percentage of high school graduates who enrolled in
college within 12 months of high school graduation. Figure 2.2B shows the
percentage of all 18- to 24-year-olds in the civilian noninstitutionalized population
(i.e., not in the military or in prison) enrolled in college in the specified year. This
population includes those who have not completed high school.
NOTE: Postsecondary enrollment includes undergraduate and graduate students. Enrollment
rates are three-year moving averages. Because of small sample sizes for Hispanics and blacks,
annual fluctuations in enrollment rates may not be significant.
SOURCES: National Center for Education Statistics, 2013a, Tables 235 and 239; calculations by
the authors.
FIGURE 2.2A
Postsecondary Enrollment Rates of Recent High School Graduates by Race/
Ethnicity, 1974 to 2011
FIGURE 2.2B
Postsecondary Enrollment Rates of All 18- to 24-Year-Olds by Race/Ethnicity,
1974 to 2011
College Enrollment
44%
49%
56%
65%
49%
66%
62%
70%
63%
50%
52% 52% 49%
48%
41%
Black, Non-Hispanic
Hispanic
White, Non-Hispanic
Enrollment Rate
Year
1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2011
0%
20%
40%
60%
80%
16%
17%
31%
39%
21%
38%
31%
44%
35%
17% 20%
16%
24%
27% 26%
Black, Non-Hispanic
Hispanic
White, Non-Hispanic
Enrollment Rate
Year
1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2011
0%
20%
40%
60%
80%
36 EDUCATION PAYS 2013 Part 2: Distribution of Benefits
College Enrollment by Gender and Age
In 2001, 60% of males and 65%
of females who had completed
high school in the past year were
enrolled in college. By 2011, those
percentages had increased to 64%
and 73%, respectively.
– As shown in Figure 2.3A, in 2011, 39% of males
and 44% of females between the ages of 18 and
24 were enrolled in college.
– In 1971, males were 9 percentage points more
likely than females to enroll in college immediately
after completing high school. Between 2001 and
2011, the enrollment rate for recent female
graduates exceeded the enrollment rate for
recent male graduates by 5 percentage points,
on average.
– In 1971, males between the ages of 18 and
24 were 13 percentage points more likely than
females of the same ages to be enrolled in
college. By 1981, the gap had narrowed to 2
percentage points. By 2001, the enrollment rate
for females was 5 percentage points higher than
the rate for males, and the gap has remained 6 to
7 percentage points since that time.
– The percentage of all 18- and 19-year-olds
enrolled in postsecondary education increased
from 38% in 1971 to 43% in 1991 and 44% in
2001. The enrollment rate for this age group had
grown to 50% by 2011. The pattern for 20- and
21-year-olds was similar. The most rapid growth
in enrollment rates for young people was in the
1980s and the 2000s.
ALSO IMPORTANT:
– In 2011, 7.7% of males and 6.5% of females between
the ages of 16 and 24 had not completed high school and
were not enrolled. (NCES, 2013a, Table 128)
– The percentage of all postsecondary students who were
over the age of 30 rose from 15% in 1970 to 22% in 1980,
and to 29% in 1990. From 2001 to 2011, 24% to 25% of
students were in this age range.
– The percentage of all postsecondary students (including
graduate students) who were age 21 or younger fell from
55% in 1970 to 40% in 1990. From 2001 to 2011, 44% to
45% of students were in this age range.
– In both 2001 and 2011, just over half of all undergraduate
students were age 21 or younger, and between 21% and
22% were over the age of 30.
(NCES, 2013a, Table 225; NCES, 2004b, Table 177)
FIGURE 2.3A
Postsecondary Enrollment Rates of Recent High School Graduates and of All
18- to 24-Year-Olds by Gender, 1971 to 2011
NOTE: “Recent high school graduates” completed high school during the 12 months
preceding postsecondary enrollment. “Postsecondary enrollment” includes both
undergraduate and graduate students. Some 18- to 24-year-olds have completed college
and are no longer enrolled. They are not included in enrollment rates. Enrollment rates are
three-year moving averages.
SOURCES: National Center for Education Statistics, 2013a, Tables 234 and 239; calculations by
the authors.
NOTE: Includes all 18- to 34-year-olds, whether or not they have graduated from high school.
“Postsecondary enrollment” includes part-time and full-time enrollment in an institution with
programs of at least two years. Enrollment rates are three-year moving averages.
SOURCES: National Center for Education Statistics, 2013a, Table 7; calculations by the authors.
FIGURE 2.3B
Postsecondary Enrollment Rates of All 18- to 34-Year-Olds by Age,
1971 to 2011
5%
8%
15%
33%
38%
7% 6% 7% 8%
14%
30%
50%
52%
11%
25%
44%
45%
10%
21%
40%
43%
9%
16%
31%
36%
18–19
20–21
22–24
25–29
30–34
Enrollment Rate
Year
0%
20%
40%
60%
80%
1971 1975 1979 1983 1987 1991 1995 1999 2003 2007 2011
21%
33%
49%
58%
51% 58%
60%
64%
44%
39%
73%
38%
33%
65%
32%
32%
64%
51%
26%
25%
Recent High School Graduates
Female Male
All 18- to 24-Year-Olds
Female Male
Enrollment Rate
Year
1971 1975 1979 1983 1987 1991 1995 1999 2003 2007 2011
0%
20%
40%
60%
80%
College Enrollment
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 37
Stratification Within Higher Education
Lower-income students, who come
from families with incomes less
than $29,600, are overrepresented
in the for-profit and two-year public
sectors, but underrepresented
in four-year public and private
nonprofit institutions. The reverse
is true for higher-income students,
who come from families with
incomes above $106,360.
– Among dependent students from the lowest
family income quartile of undergraduate
students, 38% were enrolled in public two-year
colleges in 2011-12, while 44% attended four-year
public or private nonprofit colleges.
– Among dependent students from the highest
family income quartile of undergraduate
students, 22% were enrolled in public two-year
colleges, while 65% attended four-year public or
private nonprofit colleges.
– Only 5% of dependent undergraduate students
attended for-profit institutions, but 20% of
independent students were enrolled in this
sector. While 54% of dependent students
attended four-year public and private nonprofit
colleges and universities, only 27% of
independent students were enrolled in these
sectors.
ALSO IMPORTANT:
– In 2011-12, 51% of undergraduate students were
independent and 49% were dependent. About
two-thirds of the undergraduate students at both
public four-year and private nonprofit four-year
institutions were dependent. But only 40% of public
two-year college students and 23% of undergraduates
enrolled in for-profit institutions were dependent.
(NCES, 2013b)
FIGURE 2.4A
Family Income Distribution of Dependent Students Within Postsecondary
Sectors (with Percentage of Students Enrolled in Each Sector), 2011-12
NOTE: The income brackets in Figures 2.4A and 2.4B represent quartiles of family income
for all dependent undergraduate students enrolled in 2011-12. The “Attended More than One
Institution” category shown here includes the 9% of dependent students who were enrolled in
more than one institution. Omitted here are a small number of students (about 1%) who were
enrolled in less-than-two-year public and less-than-four-year private nonprofit institutions.
Percentages may not sum to 100 because of rounding.
SOURCES: National Center for Education Statistics, 2013b; calculations by the authors.
SOURCE: NCES, 2013b.
2011-12 Undergraduate Enrollment by Dependency Status and Sector
Public
Two-Year
Public
Four-Year
Private
Nonprofit
Four-Year For-Profit
Attended
More than
One institution
Dependent 32% 38% 16% 5% 9%
Independent 44% 20% 7% 20% 7%
FIGURE 2.4B
Dependent Students’ Postsecondary Sector by Family Income, 2011-12
College Enrollment
21% 23% 26% 30%
45% 27% 17% 11%
30% 29% 24% 17%
22% 23% 26% 29%
18% 23% 27% 33%
Less than $29,600 $29,601 to $65,460 $65,461 to $106,360 $106,361 or More
Attended More than
One Institution (9%)
For-Prot (5%)
Public
Two-Year (32%)
Public
Four-Year (38%)
Private Nonprot
Four-Year (16%)
Percentage of Students
Postsecondary Sector
0% 20% 40% 60% 80% 100%
6%
4%
2%
44%
39%
35% 9%
10%
11%
38% 32% 12% 10% 8%
15%
17%
21%
36%
31%
22%
Attended More than
One Institution
Public   For-Prot
Two-Year
Public
Four-Year
Private Nonprot
Four-Year
Percentage of Students
$106,361 and Higher
$65,461 to $106,360
$29,601 to $65,460
Less than $29,600
0% 20% 40% 60% 80% 100%
Family Income
38 EDUCATION PAYS 2013 Part 2: Distribution of Benefits
Stratification Within Higher Education
FIGURE 2.5
Percentage of High School Seniors Not Enrolling in College or Enrolling in Less Selective Colleges than Those for Which They Qualify
for Admission by Socioeconomic Status, 2004
Virtually all 2004 high school graduates eligible for very selective colleges enrolled
immediately after high school. However, 53% of lower-SES and 40% of upper-SES students
with these characteristics enrolled in either less selective four-year institutions or in
two-year colleges.
– Among high school graduates eligible for somewhat selective
colleges, 8% of lower-SES students did not enroll anywhere
and another 42% “undermatched.” Among those from
upper-SES families, only 3% did not enroll in college and 26%
“undermatched.”
– Among students who had little chance of admission to any
four-year college, 49% of lower-SES and 29% of upper-SES
high school graduates did not enroll in college, passing up or
postponing the opportunity to attend a community college.
– The percentage of lower-SES students not applying to any
colleges declined from 40% in 1992 to 24% in 2004. For upperSES
students, the decline was from 13% to 7%.
– The percentage of lower-SES students applying to at least
one school of the highest selectivity for which they qualified
increased from 45% in 1992 to 67% in 2004. However, 69% of
lower-SES students qualified only for public two-year colleges,
while 12% qualified for very selective or selective colleges.
– The percentage of upper-SES students applying to at least
one school of the highest selectivity for which they qualified
increased from 65% in 1992 to 81% in 2004. Among upper-SES
students, 35% qualified only for two-year public colleges and
another 35% qualified for very selective or selective colleges.
Students are defined as “undermatching” if they enroll in institutions less selective than the most selective at which they would have an
estimated probability of at least 90% of being admitted. Nonenrollment is reported separately from undermatching.
ALSO IMPORTANT:
– Numerous studies have shown that students who enroll in the most
selective colleges for which they are qualified are more likely to earn
bachelor’s degrees than similar students who attend colleges where
most students are less well prepared academically. (Bowen, Chingos,
& McPherson, 2009; Light & Strayer, 2000; Nagaoka, Roderick, &
Coca, 2009)
Academic Undermatching of 1992 and 2004 High School Graduates
Lower SES Upper SES
Class of
1992
Class of
2004
Class of
1992
Class of
2004
No applications 40% 24% 13% 7%
Applied to less selective schools only 16% 9% 23% 12%
Did not enroll 1% 1% 1% 0%
Enrolled in less selective school 15% 8% 23% 11%
Applied to match schools 45% 67% 65% 81%
Rejected, did not enroll 1% 2% 1% 1%
Rejected, enrolled in less selective school 1% 2% 2% 3%
Accepted, did not enroll 4% 9% 2% 4%
Accepted, enrolled in less selective school 4% 4% 8% 8%
Accepted, enrolled in match school 34% 50% 52% 66%
NOTE: Percentages may not sum to 100 because of rounding.
SOURCE: National Center for Education Statistics, 2000 and 2008.
NOTE: Lower-SES refers to the lower half of the socioeconomic distribution and higher-SES refers to the upper half. College selectivity levels are based on
Barron’s categories and are determined by the SAT scores, GPA, and acceptance rates of applicants and enrollees. Students’ access to college selectivity levels
is predicted by their academic credentials. Percentages on the horizontal axis show the percentage of students in the indicated SES category who qualified for
admission to institutions in the specified selectivity category.
SOURCE: National Center for Education Statistics, 2008.
College Enrollment
29%
1% <1%
25% 30% 8%
25%
2% 3%
31%
12%
30% 30%
8% 10% 8%
49%
21%
35%
15% 11% 17%
5%
20%
Higher-SES Not Enrolled
Higher-SES Substantially Undermatched (by two or more levels)
Higher-SES Undermatched (by one level)
Lower-SES Not Enrolled
Lower-SES Substantially Undermatched (by two or more levels)
Lower-SES Undermatched (by one level)
0%
20%
40%
60%
80%
100%
Percentage of Students
Socioeconomic Status (SES) and College Selectivity Category for Which Students Qualied
Very Selective
LowerSES
(1%)
HigherSES
(8%)
LowerSES
(11%)
HigherSES
(27%)
LowerSES
(11%)
HigherSES
(20%)
LowerSES
(9%)
HigherSES
(10%)
LowerSES
(69%)
HigherSES
(35%)
Selective Somewhat Selective Nonselective Two-Year
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 39
Degrees and Certificates Awarded
In 2011-12, 58% of the 4.9
million postsecondary degrees
and certificates awarded were
bachelor’s or advanced degrees.
The other 42% were certificates or
associate degrees.
– Ninety-one percent of the credentials awarded
by private nonprofit institutions, 90% of those
awarded by public four-year institutions, and 58%
of those awarded by four-year for-profit institutions
were bachelor’s, master’s, or doctorate degrees.
Almost no baccalaureate or advanced degrees were
awarded by public two-year and for-profit two-year
or less institutions.
– The number of postsecondary certificates
awarded increased from 550,000 in 2001-02
to almost 1.1 million in 2011-12, an increase of
92%. The most rapid growth (114%) was for
certificates requiring between one and two
years of study.
– In 2011-12, 44% of the certificates awarded were
for programs of less than one year in duration,
while 46% were for programs requiring between
one and two years of study.
FIGURE 2.6A
Postsecondary Degrees and Certificates Awarded, 2011-12
FIGURE 2.6B
Percentage Distribution of Degrees and Certificates Awarded by Sector,
2011-12
FIGURE 2.6C
Number of Certificates Awarded by Type, 2001-02 and 2011-12
NOTE: Degrees reported in these figures were conferred
during the 12-month period July 1, 2011, to June 30, 2012. The
number of degrees includes those from U.S. institutions, Title
IV and non-Title IV participating, and both degree-granting and
non-degree-granting institutions. Percentages may not sum to
100 because of rounding.
SOURCES: National Center for Education Statistics, 2013c;
calculations by the authors.
Educational Attainment
44% 46% 1,060,000
550,000
4%
5%
49% 42%
5%
4%
2001-02
2011-12
Number of Certicates Awarded
Certicates
of One Year
to Less than
Two Years
Certicates
of Two Years
to Less than
Four Years in Length
Post-Baccalaureate
or Higher Certicates
Certicates
of Less than
One Year
0 200,000 400,000 600,000 800,000 1,000,000 1,200,000
11%
3% 10%
16%
38%
21%
Master’s Degrees
Doctoral Degrees
Post-Baccalaureate
or Higher Certicates
Bachelor’s Degrees
Associate Degrees
Certicates of One Year
to Less than Four Years in Length
Certicates of Less than One Year
1%
Total
4.9 Million
29%
35% 34% 21%
1%
2%
0%
0%
5%
25%
7% 65% 19%
5% 52% 30% 7%
18% 56%
2%
1% 1%
5%
2% 2%
1%
2%
56% 15% For-Prot
Two-Year or Less
For-Prot
Four-Year or More
Public Two-Year
or Less
Public Four-Year
or More
All Private
Nonprot
Percentage
Certicates
of Less than
One Year
Certicates
of One Year
to Less than
Four Years
in Length
Associate
Degrees
Bachelor’s
Degrees
PostBaccalaureate
or Higher
Certicates
Master’s
Degrees
Doctoral
Degrees
0% 20% 40% 60% 80% 100%
40 EDUCATION PAYS 2013 Part 2: Distribution of Benefits
College Completion
Among students who began
college in 2006 at age 24 or
younger and enrolled exclusively
full time, 78% had earned a degree
or certificate six years later.
– Eleven percent of these traditional-age fulltime
students (15% of those who completed
credentials) completed their studies at an institution
other than the one at which they first enrolled.
– The 7% of students who enrolled exclusively part
time had very low completion rates, with 77% of
students ages 24 or younger and 62% of older
students leaving college without a degree or
certificate.
– Among students who began their postsecondary
studies in 2003-04, 58% of dependent students
from the highest family income quartile (with
family incomes of $88,517 or more), 26% of those
with family incomes below $30,489, and 6%
of independent students had earned bachelor’s
degrees by 2009.
– Twenty percent of dependent students from the
highest income quartile, 38% from the lowest
family income quartile, and 52% of independent
students had not earned a credential and were
no longer enrolled in 2009.
– The percentage of beginning postsecondary
students from the lowest family income quartile
who earned a credential in 5 or 6 years increased
from 46% in 1989-90 to 52% in 1995-96, but
declined to 46% for the 2003-04 cohort.
– For those from the highest income quartile,
completion rates increased from 62% to 67%
to 68% over these years. Credential completion
rates were 37%, 40%, and 34%, respectively, for
independent students.
ALSO IMPORTANT:
– Official college graduation rates include only first-time
full-time students who complete their degrees or
certificates at the same institution at which they
first enrolled.
– The official six-year graduation rate for four-year
institutions increased from 55% for the 1996 starting
cohort to 58% for the 2005 cohort. The three-year
completion rate for students enrolling full time in two-year
institutions was between 28% and 31% for all cohorts
from 2005 through 2008. (NCES, 2013a, Tables 376 and
377)
NOTE: The upper income limits of the 2003-04 cohort quartiles were: lowest, $30,489; 2nd, $56,068;
3rd, $88,516. Students classified as full time were enrolled full time throughout their studies.
SOURCES: National Center for Education Statistics, 1994, 2001, and 2009; calculations by the authors.
SOURCE: Shapiro et al., 2012, Table 7.
FIGURE 2.7A
Percentage Distribution of Outcomes for Students Beginning Postsecondary
Study in 2006 (with Percentage of Students in Each Category)
FIGURE 2.7B
Percentage Distribution of Outcomes by Dependency Status and Family
Income, Students Enrolling in 1989-90, 1995-96, and 2003-04
Educational Attainment
67%
7%
25%
56%
24%
31% 9% 20% 40%
11% 62%
36%
4%
4%
16% 28% 31%
13% 77%
11% 18%
4%
3%
3%
Percentage
No Degree,
Not Enrolled
Completed at Still Enrolled
Different Institution
Completed at
Starting Institution
0% 20% 40% 60% 80% 100%
Mixed FT/PT
(8%)
Part-Time (4%)
Full-Time (5%)
Mixed FT/PT
(43%)
Part-Time (3%)
Full-Time (37%)
24 or Younger (82%) Over 24 (18%)
1989-90 17% 11% 18% 13% 42%
1995-96 26% 15% 11% 16% 33%
2003-04 26% 9% 11% 16% 38%
1995-96 32% 10% 9% 17% 32%
2003-04 35% 11% 6% 17% 31%
1989-90 26% 13% 11% 15% 35%
1989-90 35% 12% 10% 14% 30%
1995-96 40% 12% 4% 16% 28%
2003-04 44% 10% 5% 14% 27%
1989-90 43% 12% 7% 13% 25%
1995-96 57% 7% 14% 19%
3%
2003-04 58% 8%
2%
12% 20%
1989-90 5% 8% 24% 11% 52%
2003-04 6% 10% 18% 15% 52%
1995-96
4%
9% 27% 12% 48%
0% 20% 40% 60% 80% 100%
Percentage
Independent
Students Highest Quartile 3rd Quartile
Dependent Students’ Family Income
2nd Quartile Lowest Quartile
No Degree,
Still Enrolled
No Degree,
Left Without Returning
Attained
Certicate
Attained
Associate Degree
Attained
Bachelor’s Degree
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 41
Educational Attainment over Time
The percentage of adults in the
U.S. between the ages of 25
and 34 with a four-year college
degree grew from 6% in 1950 to
24% in 1980 and 1990. In 2012,
34% of adults in this age group
had earned a bachelor’s degree
or higher.
– The percentage of adults ages 25–34 with some
college or an associate degree grew rapidly in the
1970s and again in the 1990s but has stabilized at
28% to 29% since 2000.
– In 1940, only 13% of adults in the U.S. ages
25–34 had any education beyond high school.
That percentage had risen to 46% by 1980 and to
63% by 2012.
– In 2012, when 34% of adults ages 25–34 had a
bachelor’s degree or higher and 63% had at least
some college, 33% of those ages 35–54 had
four-year degrees and 60% had at least some
college. Attainment levels were lower for those
ages 55 and older, among whom 28% had a
bachelor’s degree or higher and 52% had at least
some college.
ALSO IMPORTANT:
– The fact that the earnings differential between high
school graduates and college graduates has increased
over time despite the increasing prevalence of college
degrees indicates that the demand for college-educated
workers in the labor market has increased more rapidly
than the supply. (See Goldin and Katz [2008] and Autor
[2010] for discussion of the failure of the supply of
college graduates to keep up with the demand.)
– According to the Organisation for Economic
Co-operation and Development (OECD), in 2011,
when 33% of adults ages 25–34 in the U.S. had
four-year college degrees, the highest attainment
rates were 46% in Norway and 39% in Korea, Poland,
and the U.K. (OECD, 2013, Table A1.3a)
– In 2011, when 43% of adults ages 25–34 in the U.S.
had either bachelor’s degrees or vocational associate
degrees, the highest attainment rates for comparable
degrees were 64% in Korea and 59% in Japan. (OECD,
2013, Table A1.3a)
FIGURE 2.8A
Education Level of Individuals Ages 25 to 34, 1940–2012
NOTE: Percentages may not sum to 100 because of rounding.
SOURCE: U.S. Census Bureau, 2012g, Table A-1.
NOTE: Percentages may not sum to 100 because of rounding.
SOURCE: U.S. Census Bureau, 2012g, Table A-1.
FIGURE 2.8B
Percentage of Adults with Some College or an Associate Degree and with a
Bachelor’s Degree or Higher, by Age Group, 2002 and 2012
Educational Attainment
1940
1950
1960
1970
1980
1990
2000
2010
2011
2012
0% 20% 40% 60% 80% 100%
Percentage of Individuals
Year
11% 27%
11% 27%
12% 27%
12% 31%
14% 41%
15% 40%
26% 44%
42% 36%
51% 34%
64% 22%
29%
29%
28%
28%
22%
22%
14%
11%
10%
7%
34%
33%
33%
29%
24%
24%
16%
11%
6%
6%
Bachelor’s
Degree
or Higher
Some College
or Associate
Degree
High School
Diploma
Less than a
High School
Diploma
31% 34% 29%
28% 29% 28% 27%
20%
24%
33% 21% 28%
Some College or Associate Degree
Bachelor’s Degree or Higher
60%
80%
100%
40%
20%
0%
Year and Age Group
Percentage of Individuals
2002 2012
Ages 25-34 Ages 35-54 Ages 55 and older
2002 2012 2002 2012
42 EDUCATION PAYS 2013 Part 2: Distribution of Benefits
Educational Attainment by Race/Ethnicity
and Gender
Among blacks, whites, and
Hispanics, larger percentages of
females than of males between the
ages of 25 and 29 had completed
high school, had completed some
college, and had completed
bachelor’s degrees in 2012.
– The percentage of black females ages 25 to 29
who had completed a bachelor’s degree doubled
from 12% in 1982 to 24% in 2012, while the
percentage of black males with four-year degrees
rose from 11% to 16%.
– The percentage of Hispanic females ages 25 to
29 who had completed a bachelor’s degree more
than doubled, from 7% in 1982 to 17% in 2012,
while the percentage of Hispanic males with
four-year degrees rose from 9% to 11%.
– The percentage of white females ages 25 to 29
who had completed a bachelor’s degree almost
doubled, from 22% in 1982 to 43% in 2012,
while the percentage of white males with
four-year degrees rose from 26% to 35%.
– Over the decade from 1992 to 2002, most of
the gaps in bachelor’s degree attainment across
racial/ethnic groups remained stable, but the gap
between white and black males grew from 13
percentage points in 2002 to 15 points in 2007
and to 19 points in 2012.
ALSO IMPORTANT:
– Educational attainment is higher for U.S.-born
Hispanics than for Hispanic immigrants. Among
Hispanic adults ages 25 and older in 2011, about 15%
of those born outside the U.S. and 33% of those born
in the U.S. to immigrant Hispanic mothers had some
college experience but less than a bachelor’s degree.
Seventeen percent of the second generation had at
least a bachelor’s degree, compared to only 10% of
Hispanic immigrants. (U.S. Census Bureau, 2012e)
– Hispanics include individuals from many different
countries, with considerable variation in educational
attainment rates. For example, both first- and
second-generation Mexican immigrants are much
less likely than immigrants from other Latin
American countries to have completed college.
(U.S. Census Bureau, 2012e)
FIGURE 2.9
Percentage of 25- to 29-Year-Olds Who Have Completed High School, Some
College, or a Bachelor’s Degree, by Race/Ethnicity and Gender, 1973–2012
NOTE: Enrollment rates are three-year moving averages.
SOURCES: National Center for Education Statistics, 2010; U.S. Census Bureau, 2009,
2010b, 2011b, and 2012c, Table 1; calculations by the authors.
79%
78% 80%
83%
87%
87%
90%
87%
60%
51%
54%
50%
18%
18%
24%
16%
37%
34%
13%
11%
34%
35%
12%
11%
At Least a High School Diploma
At Least Some College Experience
At Least a Bachelor’s Degree
At Least a High School Diploma
At Least Some College Experience
At Least a Bachelor’s Degree
Females Males
0%
20%
40%
60%
80%
100%
Black, Non-Hispanic
Year
Percentage
1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012
Hispanic
0%
20%
40%
60%
80%
100%
Year
Percentage
1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012
60%
59%
59%
58%
75%
69%
44%
35%
17%
11%
66%
60%
36%
29%
11%
9%
26%
24%
10%
8%
25%
22%
9%
7%
89%
89%
91%
89%
94%
93%
95%
94%
75%
64%
43%
35%
69%
61%
37%
32%
51%
50%
27%
27%
49%
44%
26%
22%
White, Non-Hispanic
0%
20%
40%
60%
80%
100%
Year
Percentage
1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012
Educational Attainment
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 43
Science, Technology, Engineering,
and Mathematics (STEM) Fields
– While 24% of 2004 high school graduates had earned
bachelor’s degrees by 2009, only 4% (17% of those earning
degrees) earned bachelor’s degrees in STEM fields. While
2.5% of high school graduates were employed in STEM fields
a year after graduating from college, about 38% of the STEM
graduates did not have STEM jobs.
– Many STEM jobs are filled by non-STEM majors. Only 53%
of 2003-04 beginning postsecondary students who earned
bachelor’s degrees by 2009 and were employed in computer- and
math-related jobs one year after graduation had majored in STEM
fields. Twenty percent majored in social sciences, humanities, or
education, and 21% majored in business.
FIGURE 2.10A
Of 2003-04 Beginning Four-Year College Students Who Earned
Bachelor’s Degrees, Percentage Persisting in the Fields They Entered
FIGURE 2.10C
Majors of Bachelor’s Degree Recipients in Selected STEM Occupations One Year After Graduation (with Percentage of All Employed Graduates
Working in Occupation), 2009
FIGURE 2.10B
Percentage of High School Graduates Entering Four-Year Colleges,
Graduating in STEM Fields, and Employed in STEM Fields
SOURCES: Chen & Ho, 2013, Table 2; calculations by the authors. NOTE: Based on 2003-04 beginning postsecondary students who complete
a STEM degree within six years.
SOURCE: Salzman, Kuehn, & Lowell, 2013, Figure A.
NOTE: Percentages may not sum to totals because of
rounding.
SOURCES: Woo, Green, & Matthews, 2013, Table 3.3;
calculations by the authors.
Students who enter the fields of engineering and mathematics are more likely than other
students to earn their bachelor’s degrees in the fields in which they began.
ALSO IMPORTANT:
– In 2008, 31% of bachelor’s degrees, 20% of master’s degrees,
and 67% of doctoral degrees were in STEM fields. (National Science
Foundation, 2013)
Engineering/
Technologies
Social/
Behavioral
Sciences
Physical
Sciences
Business
Biological/
Life Sciences
Computer/
Information
Sciences
Humanities
Health
Sciences
Education
Mathematics
73% 71% 67% 66% 65% 64% 59% 57% 55% 47%
Percentage
0%
20%
40%
60%
80%
STEM Major Non-STEM Major
Educational Attainment
77% 17% 6%
83% 6% 8%
15%
6%
85%
53%
96%
53% 27% 6%
20% 21%
11%
2%
2%
4%
1%
1%
2%
Percentage of Graduates
Social Sciences,
Humanities, Education
STEM Business Other Non-STEM
Other Health Care
Occupations (4%)
Nurses (4%)
Computer/Information Services/
Math-Related (5%)
Physical and Life Scientists (2%)
Engineers and
Engineering Technicians (4%)
0% 20% 40% 60% 80% 100%
Occupation in 2009
Major Field of Study
High School Graduates: 100%
Enter College (as Freshman
at Four-Year College): 39%
Graduate
Four-Year College: 24%
Graduate in STEM Field: 4%
Enter STEM Job One Year
After Graduation: 2.5%
College Enrollment and Attainment by State
The percentage of young people enrolling in college within a year after they were scheduled
to graduate from high school in 2007-08 ranged from 29% in Nevada and 30% in the District
of Columbia to 61% in Massachusetts and South Dakota.
– Over the years from 2008 to 2010, the percentage of adults
ages 25 and older with at least a bachelor’s degree ranged
from 17% in West Virginia and 19% in Arkansas to 39% in
Massachusetts and 50% in the District of Columbia.
– Arkansas and Mississippi have college enrollment rates
close to the national average of 48%, but they have only
19% and 20%, respectively, of adults with bachelor’s
degrees, compared to the national average of 28%.
– The District of Columbia has the highest attainment rate in the
country, but the second lowest college enrollment rate — 30%
of high school graduates.
– In South Carolina in 2007-08, 70% of recent public high
school graduates enrolled in college, compared to the national
average of 64%. However, because 38% did not graduate
from high school (compared to the national average of 25%),
only 44% of all young people enrolled in college — less than
the national average of 48%.
ALSO IMPORTANT:
– About 78% of public high school 12th-graders graduate, compared to
98% of those enrolled in private high schools. (NCES, 2012a, Table 125;
Broughman & Swain, 2013, Table 13)
NOTE: High school graduation rates are estimated based on data for public high schools. Actual graduation rates are slightly higher because 7% to 8% of
students are enrolled in private high schools, which have higher graduation rates. Attainment data are estimates using three-year averages of 2008–2010 data.
Use of a three-year average increases the sample size, thereby reducing the size of sampling errors and producing more stable estimates. Percentages may not
sum to 100 because of rounding.
SOURCES: National Center for Education Statistics, 2012a, Tables 113, 212; NCES, 2013a, Table 16; calculations by the authors.
FIGURE 2.11
Educational Attainment of Youth Scheduled to Graduate from High School in 2007-08
44 EDUCATION PAYS 2013 Part 2: Distribution of Benefits
Geographic Comparisons 39%26%35%32%27%36%25%28%
33%
26%
27%
34%
32%
30%
30%
36%
24%
20%
25%
23%
26%
19%
27%
28%
29%
36%
30%
31%
23%
22%
25%
17%
27%
20%
25%
26%
24%
22%
24%
29%
34%
28%
26%
21%
26%
24%
31%
26%
29%
28%
50%
22%
0%
10%
20%
30%
40%
50%
Percentage
State
Percentage of Adults Ages 25 and Older with at Least a Bachelor’s Degree, 2008–2010
MA
SD
NJ
MN
ND
CT
IA
NE
NH
WI
PA
VA
NY
KS
RI
MA
OH
MS
MO
IN
NC
AR
DE
US
HI
CO
CA
IL
TN
AL
MI
WV
GA
KY
NM
ME
WY
OK
SC
UT
VT
MT
TX
LA
FL
ID
WA
AZ
OR
AK
DC
NV
61%
61%
60%
60%
57%
56%
56%
55%
53%
53%
53%
53%
53%
52%
52%
51%
50%
49%
49%
49%
48%
48%
48%
48%
47%
47%
47%
46%
46%
46%
46%
46%
46%
45%
45%
45%
45%
44%
44%
43%
43%
43%
42%
41%
39%
39%
37%
36%
36%
32%
30%
29%
21%
24%
24%
27%
27%
26%
31%
29%
30%
37%
30%
24%
18%
27%
25%
30%
29%
14%
33%
25%
25%
29%
24%
27%
29%
28%
25%
34%
29%
23%
31%
32%
20%
29%
22%
34%
31%
34%
19%
31%
46%
39%
32%
22%
28%
41%
35%
34%
41%
38%
26%
28%
18%
16%
15%
14%
16%
18%
14%
16%
17%
10%
17%
23%
29%
21%
24%
20%
21%
36%
18%
26%
27%
24%
28%
25%
24%
25%
29%
20%
25%
31%
24%
23%
35%
26%
33%
21%
24%
22%
38%
26%
11%
18%
27%
36%
33%
20%
28%
29%
23%
31%
44%
44%
Percentage Graduating from High School, but Not Enrolling in Postsecondary Education
Percentage of Students Not Completing High School Diploma
Percentage of All Youths Enrolling in Postsecondary Education
(75%) MA
(72%) SD
(71%) NJ
(69%) MN
(68%) ND
(68%) CT
(64%) IA
(65%) NE
(64%) NH
(59%) WI
(64%) PA
(69%) VA
(74%) NY
(65%) KS
(67%) RI
(63%) MA
(63%) OH
(77%) MS
(60%) MO
(66%) IN
(66%) NC
(63%) AR
(66%) DE
(64%) US
(62%) HI
(63%) CO
(65%) CA
(57%) IL
(62%) TN
(67%) AL
(60%) MI
(59%) WV
(70%) GA
(61%) KY
(68%) NM
(57%) ME
(59%) WY
(56%) OK
(70%) SC
(58%) UT
(48%) VT
(52%) MT
(57%) TX
(65%) LA
(59%) FL
(49%) ID
(51%) WA
(51%) AZ
(47%) OR
(46%) AK
(53%) DC
(51%) NV
Percentage
0%
20%
40%
60%
80%
100%
STATE (Percentage of Public High School Graduates Enrolling in College)
For detailed data, see: trends.collegeboard.org. EDUCATION PAYS 2013 45
International Comparisons: Public Spending
on Higher Education
FIGURE 2.12
Proportions of Expenditures on Higher Education Institutions from Public, Household, and Other Private Sources, 2010
NOTE: “Other Private” sources include private businesses and nonprofit organizations, such as religious and charitable organizations and business and labor
organizations. Money transferred to educational institutions from private sources, including public funding via subsidies to households, is included in the
private funds total. Total expenditures per student are estimated based on the portion of total expenditures coming from public sources and the average public
expenditure per student. Percentages may not sum to 100 because of rounding.
SOURCES: OECD, 2013, Indicator 3.2b; calculations by the authors.
Public funding constitutes a lower percentage of total funding for higher education in the
United States than in most other countries.
– In 2010, 36% of funding for U.S. higher
education institutions came from
public sources, while 48% came from
households and 16% came from other
private sources.
– In four OECD countries, higher
education institutions received smaller
percentages of their funding from
public sources than the U.S.: 22% in
Chile, 25% in the United Kingdom,
27% in Korea, and 34% in Japan.
– In Finland and Norway, 96% of higher
education funding was public.
– The percentages of higher education
funding coming from households ranged
from 0% in Sweden and 3% in Austria and
Norway to 56% in the United Kingdom
and 70% in Chile, compared to 48% in
the United States.
ALSO IMPORTANT:
– In 2010, governments in the U.S. provided
an average of $12,112 per student in funding
to public higher education institutions — 6%
more than the OECD average of $11,382.
(OECD 2013, Indicator B3.4)
– Per-student public funding for public higher
education institutions in 2010 ranged from
$4,248 in Chile and $4,680 in Argentina to
$21,893 in Switzerland and $21,982 in Israel.
(OECD 2013, Indicator B3.4)
– In countries such as Switzerland, Norway,
and Sweden, almost all postsecondary
students attend public institutions. In
contrast, in 2011 28% of U.S. students
attended private institutions. (NCES, 2013a,
Table 221)
– In 2012-13, 63% of the annual average tuition
and fees paid by households in the United
States was covered by grant aid from all
sources and federal tax benefits. (College
Board, 2013)
– Considering room and board charges in
addition to tuition and fees, in 2012-13,
on average 36% of the total was covered
by grants and federal tax benefits, 26%
was covered by loans through the federal
government, and 38% by other resources.
(College Board, 2013)
Geographic Comparisons
Household
Other Private
Public
96%
96%
95%
91%
91%
90%
88%
85%
82%
81%
79%
78%
75%
72%
71%
70%
70%
69%
68%
66%
57%
54%
46%
36%
34%
27%
25%
22%
3%
5%
5%
3%
0%
1%
8%
1%
2%
4%
4% 0%
0%
8%
0%
0%
9%
6%
5%
10%
12%
7%
13%
7%
8%
8%
18%
8%
24%
16%
15%
16%
14%
26%
19%
Chile ($6,794)
United Kingdom ($15,206)
Japan ($18,191)
Korea ($11,218)
United States ($25,576)
Australia ($16,020)
Israel ($10,876)
Canada ($24,704)
New Zealand ($10,418)
Italy ($9,501)
Mexico ($7,872)
Portugal ($9,498)
Slovak Republic ($6,768)
Poland ($6,714)
Netherlands ($17,254)
Spain ($13,300)
Estonia ($5,715)
Czech Republic ($7,338)
Austria ($15,007)
Slovenia ($8,517)
France ($14,699)
Ireland ($15,911)
Sweden ($19,727)
Belgium ($14,776)
Iceland ($8,728)
Denmark ($18,432)
Norway ($19,050)
Finland ($16,714)
11%
10%
16%
9%
18%
18%
15%
23%
12%
30%
23%
24%
34%
20%
30%
39%
48%
52%
47%
56%
70%
Country (with Estimated Total Expenditures on Higher Education Institutions per Student)
0%
20%
40%
60%
80%
100%
Percentage
46 EDUCATION PAYS 2013
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ACKNOWLEDGMENTS
We are grateful to Charles Kurose for his invaluable input on this project
and to Kathleen Little and Anne Sturtevant for their excellent editorial help.
The publication would not have been possible without the cooperation and
support of many people at the College Board, particularly Craig Jerald, Rohit
Tandon, Silvia Ivanova, Marilyn Cushman, Jess Howell, Mike Hurwitz, Kathryn
McGinley, Matea Pender, and Jonathan Smith. Barbara Kridl and her colleagues
at RTI International provided expert graphic design work, as well as advice on
content. Tom Snyder of the Department of Education provided valuable data.