Federal Reserve Bank of Richmond
Economic Brief - June 2013
Implications of Risks and Rewards in College Decisions
Despite
a large and growing earnings premium for college graduates, growth in
college enrollment and especially college attainment in the United
States has been quite slow. The labor market's apparent lack of
responsiveness to the earnings premium may be driven in part by the
risks that marginally prepared students face when they go to college.
Failing or dropping out could leave them with low wealth, high debt, and
low earnings. Recent research indicates that neither further increases
in the earnings premium nor reductions in college costs are likely to
produce large increases in the college completion rate. And if
technological change continues to increase the demand for skilled labor,
both the earnings premium and income inequality will continue to grow.
The full report is available at:
http://www.richmondfed.org/publications/research/economic_brief/2013/eb_13-06.cfm?WT.mc_id=110006
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment