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Journal Article
Falling College Wage Premiums by Race and Ethnicity
Workers with a college degree typically earn substantially more than workers with less education. This so-called college wage premium increased for several decades, but it has been flat to down in recent years and declined notably since the pandemic. Analysis indicates that this reflects an acceleration of wage gains for high school graduates rather than a slowdown for college graduates. This pattern is most evident for workers in racial and ethnic groups other than White, possibly reflecting an unusually tight labor market that may have altered their college attendance decisions.
Is College an Engine of Inequality?
Higher education holds the promise of helping to level the playing field, yet data suggest that Black and Hispanic students are falling behind.
Do College Degrees Mean More Wealth?
College degrees usually indicate higher income and wealth over those without. But the college wealth premium for those born more recently is getting smaller.
What Is Causing the College Premium to Shrink?
Luck, financial liberalization and the rising cost of college may help explain why the financial advantage of a college degree is less than it once was.