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Reports show that even in slow economy, education pays off

Despite the global economic recession, education remains a crucial investment, two new reports argue, both for individual life success and the long-term prospects of economic development and competitiveness on the national scale.

In a report released last week, the College Board says that the value of a college degree is growing, even with increasing tuition and student loans. The report, "Education Pays 2010," notes that median earnings for four-year college graduates have increased during the last three years at a faster rate than high school graduates and that the unemployment rate for college graduates in 2009 was half that of high school graduates -- 4.6 percent, compared to 9.7 percent.

The difference in pay between college graduates and those with only a high school diploma has grown significantly, according to the report, to 79 percent more for women and 74 percent for men. Ten years ago, the difference was 60 percent for women college graduates and 54 percent for men.

Beyond the individual financial benefits, the report also points to broader benefits less easily quantified. "The knowledge, fulfillment, self-awareness, and broadening of horizons associated with education transform the lives of students and those with whom they live and work."

But the report cautions that serious inequities remain among those who ultimately share in those benefits, even in the face of research that shows those most likely to reap the greatest rewards from college -- students from low-income families -- are those most likely to be discouraged from attending. The solution, the report urges, "is to provide better information and advice -- and more generous financial support -- that will increase their chances of success. And of primary importance, all students need and deserve higher-quality academic preparation before they reach the college decision state.

"Solid evidence indicates that our main focus should be on providing opportunities for postsecondard preparation and access, and on supporting more students in making choices that will allow them to maximize their postsecondary education success. ....

"The evidence is overwhelming that higher education improves people's lives, makes our economy more efficient and contributes to a more equitable society. The existing gaps in participation and success are detrimental not only to individual lives , but also to society as a whole. Different paths are appropriate for different individuals, and our challenge is to make the most promising paths readily available to students from all backgrounds."

On the national scale, the international Organisation for Economic Cooperation and Development recommends in its latest Education at a Glance report that governments should be continuing to expand postsecondary opportunites as a strategy for economic development.

The OECD report notes that on average for countries that are members of the organization, a man with education beyond high school will generate $119,000 more in income taxes and social contributions during his working life than one who has only completed high school.

But the report also says that increasingly tight budgets mean that governments must respond with greater "effectiveness and efficiency" in responding to the skill needs of a rapidly changing labor market.

"It is worrying that the significant increase in spending per student over the past decade has, in many countries, not been matched with improvements in the quality of learning outcomes," the report says. ... "The future will measure the success of education systems no longer by how much contries spend on education of by how many individuals complete a degree, but by the educational outcomes achieved and by their impact on economic and social progress."

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