The Economic Value of Education

A government report based on data from the Census Bureau has determined that a bachelor's degree is worth about $23,000 a year, with college graduates earning and average of $51,554 in 2004 compared with $28,645 for those with only a high school diploma. If you carry that yearly salary difference through retirement age, you end up with a total difference of about $1.2M.

High School dropouts earned an average of $19,169 a year, and those with advanced college degrees earned an average of $78,093.

So high school is worth about $502,000

College is worth an incremental $1.2M

Graduate school is worth another $1.4M

It seems like a no-brainer to me, specially when you consider some of my buddies who have turned what they learned into economic engines worth billions of dollars as an up-side. Of course there is a down side, but according to the large-scale statistics, even Joe-average is best served staying in school a little longer.