WASHINGTON – How much is a bachelor’s degree worth? About $23,000 a year, the government said in a report released Thursday.
That is the average gap in earnings between adults with bachelor’s degrees and those with high school diplomas, according to data from the Census Bureau.
College graduates made an average of $51,554 in 2004, compared with $28,645 for adults with a high school diploma. High school dropouts earned an average of $19,169, and those with advanced college degrees made an average of $78,093.
“There appear to be strong incentives to get a college degree, given the gaps that we observe,” said Lisa Barrow, senior economist at the Federal Reserve Bank of Chicago.
The income gap narrowed slightly from five years earlier, when college graduates made nearly twice as much as high school graduates. But the differences remained significant for men and women of every racial and ethnic group.
Eighty-five percent of people 25 and older have at least a high school diploma or the equivalent, compared with 80 percent in 2000 and a little more than half in 1970.
Twenty-eight percent have at least a bachelor’s degree, compared with about 24 percent in 2000 and 11 percent in 1970.
“I think we’ve done a very good job of getting individuals into college,” said Cecilia Rouse, professor of economics and public affairs at Princeton University. “But we don’t fully understand why we don’t do as good a job of graduating them.”
Chester Finn, president of the Thomas B. Fordham Institute in Washington, D.C., said too many high school graduates are unprepared to succeed in college.
“If you don’t emerge from high school having done at least the equivalent of advanced algebra, you are not going to be ready for college math,” Finn said. “You can make similar points about English.”
Among the other findings in the report:
* In Washington state, 91 percent of adults had at least a high school diploma, and nearly 31 percent had at least a bachelor’s degree.
* Minnesota, Utah, Montana, New Hampshire and Alaska had the highest proportions of adults with at least a high school diploma – about 92 percent for all five states.
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