Stay in school. It's well-worn advice, but it's right on the money when it comes to the economic benefits of a college education.
"It's great to inherit money, but since most of us don't see that in our future, the surest route, if you have to earn your own money, is through an education," said R. Thayne Robson, director of the University of Utah Bureau of Economic and Business Research.Robson was commenting on statistics, compiled in a University of Utah study, showing that a college degree is becoming an even better investment. (See accompanying chart.)
The U. study said the figures reflect a growing economic gap between college-educated and other workers.
In 1981, college graduate males earned $1.28 for each dollar made by a high school graduate. But, by 1987, that had increased to $1.39 for every $1.
Robson said no Utah figures exist that are specific to Utah higher education, but Utah follows the national trends, even if there is a slight difference in the figures. And, although some Utah salaries may be below those elsewhere, many college-educated professionals, such as engineers, compete in a national marketplace and have salaries comparable to workers in other states, he said.
"The basic point is that for the years you invest in an education, it pays," Robson said.
The increasing importance of education reflects fundamental economic changes in America.
In the past, individuals with a high school education or less often made a good income in a unionized industry.
But, Robson said, the high-paying jobs in copper, steel and manufacturing industries have dwindled. American industry has shifted to more automated production and sophisticated technology, which require a more educated work force.
The economist said companies recognize the value of their educated work force. Thirty years ago, firms viewed their workers as expendable, but nowadays "the view is that the most valuable asset of a company is the knowledge and talents of its workers. Human beings aren't expendable," Robson said.
"Hercules, for example, has a great investment in physical plant and equipment. It's true that could be moved out of town. But it is the aggregation of human talent, its workers, that makes Hercules, or any other company, as great as it is," he explained.
It's this recognition that often leads companies to subsidize or pay for the additional education for their workers, he said.
Increasing numbers of local and state government are also recognizing the value of educated workers in their communities, he said.
Besides contributing more tax dollars because of higher incomes, the educated workers expect more cultural and social dimensions to the community and will willingly support them, he said.
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(chart)
Want more money? Stay in school
A study done by the University of Utah shows that a better education translates into a better income.
Median annual income
High school Bachelor's Grad. degree
Male $25,394 $35,200 $41,700
Female $16,461 $23,400 $29,700
Lifetime earnings
Male $1.5 million $1.85 million $2 million
Female $1 million $ 1.15 million $1.3 million