Returns to Education in the United States over the Long Run
The returns to education in the United States have shown a significant upward trend since the 1980s. The average annual rate of return on education, which indicates the increase in earnings from an additional year of schooling, rose from 6 percent in 1980 to over 12 percent in 2010. Although it declined slightly thereafter, it still surpasses the global average of 10 percent and has seen a modest increase following the pandemic. Remarkably, these returns continue to exceed those from stock market investments. Notably, the returns to a college education have also been on the rise, especially since the pandemic, underscoring the enduring value of higher education in enhancing earning potential.
Sources
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