There are substantial differences in lifetime earnings by educational attainment
Men with bachelor's degrees earn approximately $900,000 more in median lifetime earnings than high school graduates. Women with bachelor's degrees earn $630,000 more. Men with graduate degrees earn $1.5million more in median lifetime earnings than high school graduates. Women with graduate degrees earn $1.1million more.
After controlling for key socio-demographic variables that influence earnings and the probability of college completion, the differences in lifetime earnings by educational attainment are reduced, but still substantial
Regression estimates show that men with bachelor's degrees would earn $655,000 more in median lifetime earnings than high school graduates. Women with a bachelor's degrees would earn $450,000 more in median lifetime earnings than high school graduates.
We also measure the lifetime returns of educational attainment using the discounted present dollar value
Applying a 4percent annual real discount rate, the net present lifetime value at age20 of a bachelor's degree relative to a high school diploma is $260,000 for men and $180,000 for women. For those with a graduate degree, it is $400,000 for men and $310,000 for women.
Overall, these findings confirm the significant long-term economic benefits associated with college education.
