Do you need a college degree to succeed? Here's what the data shows.

do you need a college degree to succeed? here's what the data shows.

college-grads.jpg

College was once widely viewed as a pathway to success, but today only about 1 in 4 Americans say a bachelor's degree is necessary to secure a well-paying job, according to a new survey from the Pew Research Center.

Fifteen years ago, about 3 in 4 people told Pew that a college degree was extremely or very important to get ahead in life. The shift comes as higher education costs continue to soar, with some universities now charging close to $100,000 per year for tuition and other costs.

At the same time, employment opportunities and earnings for young men without college degrees have improved in the last decade, reversing some of the economic damage that eroded the group's fortunes starting in the 1970s.

"Things are looking up for less-educated young men," Richard Fry, senior economist at Pew, told CBS MoneyWatch. Americans' changing views about college could be based on "not just improving labor markets and outcomes for less educated young men, but it's also clear that there is concern about borrowing for college."

Young men with only a high school degree have seen a slight rebound in their earnings since 2014, Pew found. The median annual income for men 25- to 34-years-old without a college degree was $45,000 in 2023, a 15% increase from $39,300 in 2014 when adjusted for inflation, according to Pew's analysis of Census data.

Generation gap

But while less educated young men are doing somewhat better than they were a decade ago, they still haven't caught up with the earnings of older generations of men at the same age in the 1970s. In 1973, young men without college degrees were earning almost $58,000 a year. That means the typical income for this group remains 22% lower than half a century ago, according to Pew.

"If you were a high school-educated young man in the early 1970s, it was more likely you were a member of a trade union, the manufacturing employment was much greater. So, in short, starting in the 1980s things shifted away from opportunities for less educated young men," Fry noted.

"In the grand scheme of things, young, less educated men aren't where they were 50 years ago," he added.

Young women without college degrees have, in some respects, fared better than young men, partly due to their expanding job opportunities. Their earnings have bumped up from about $35,000 annually in 1973 to $36,000 today. But young women with college degrees still earn far more, at about $65,000 per year, Pew found.

More income and wealth for college grads

When asking if a college diploma is important to secure a "well paying" job today, Pew didn't define the term, leaving that open to a person's interpretation, Fry said.

But the data from Pew's analysis clearly shows that the typical college graduate today not only earns far more than their counterparts with only a high school education, but also is able to amass much greater wealth as well. In other words, a college degree opens the door to a lifetime of higher earnings, which, in turn, helps unlock ways to build wealth such as jobs with 401(k) plans and stock equity plans.

That's not to say that young workers without a college degree can't also earn higher incomes or build wealth. For instance, people who go into trades like plumbing or welding typically earn higher incomes. The median annual pay for plumbers is $61,550 — significantly higher than the typical $45,000 in annual income for high school grads, according to the Bureau of Labor Statistics.

But that's still far below the $77,000 median annual income for young male college grads and below the $65,000 median income for young women with college degrees.

Young college grads also have roughly quadruple the wealth of their less educated counterparts, Pew found. People between the ages of 25 and 34 with a bachelor's degree have an average net worth of about $120,000, versus about $31,000 for those with just a high school education.

"Higher education generates higher wealth," Fry said. "Wealth tends to come from two places: home equity and stock equity or retirement assets. Families with college-educated heads have a higher homeownership rate. And college-educated adults are more likely to have access to 401(k)s and 403(b)s," referring to employer-sponsored retirement programs.

Is college worth the money?

Half of Americans told Pew college is worth the money only if you don't have to go into debt, Pew found. Only 22% see the investment as worthwhile if you have to borrow to earn the degree.

"I'm a bit surprised at how low it is," Fry said of the 22% share, "but it suggests that how you pay for college is also of concern."

That comes as Americans have accumulated $1.7 trillion in student debt, a burden that has made it harder for some to buy homes or achieve other hallmarks of middle-class life.

Among the most skeptical about the value of college are Republicans, with the survey finding that almost 6 in 10 GOP-leaning respondents said it's less important to have a college degree today versus 20 years ago. About 4 in 10 Democrats agreed with that proposition.

Such views could amount to a red flag for the higher education sector, especially as the share of young, male high school grads who are enrolled in college has declined. And some colleges have closed in recent years due to low enrollment and other financial challenges.

"College administrations and boards and presidents should be concerned with these perceptions of the value of college," Fry said.

OTHER NEWS

10 minutes ago

‘Black Ice: The Rhythm' movie highlights challenges underserved communities face in sport of ice hockey

14 minutes ago

Perth traffic: Peak-hour gridlock after crash on Kwinana Freeway northbound at Leach Highway, Bateman

14 minutes ago

More areas seeking 'cool' post-pandemic nightlife boost

14 minutes ago

This Low-cost Airline Is Adding 3 New Routes to Florida — and Is Celebrating with Major Discounts

14 minutes ago

Dreaming of moving to Italy? Tuscany will pay you up to $32,000 to buy a home in a village

14 minutes ago

Banks one of three Britons to progress in qualifying

14 minutes ago

UK heatwave: Full list of areas where it will be 30C and hotter than Ibiza

14 minutes ago

Six million antelope make up world’s largest land mammal migration, but poaching on rise

14 minutes ago

EU Council approves draft security agreement with Ukraine

14 minutes ago

WikiLeaks’ Julian Assange arrives at court before guilty plea in deal with US securing his freedom

14 minutes ago

The yuan's status as a global currency might be gaining ground. But top CEOs see more hurdles to clear

20 minutes ago

Video: Roy Keane names the one England player with 'X-factor' after drab draw with Slovenia... as he admits he's 'always excited to watch' the 'amazing' Three Lions star

20 minutes ago

Ian Wright offers suggestion for how England can fit Cole Plamer in their side at Euro 2024... as he insists the forward needs to play 'for balance and fluidity' in the Three Lions team

21 minutes ago

Frisky GOP Michigan Rep. Neil Friske claims he was ‘framed’ after arrest for assaulting, chasing stripper with gun

21 minutes ago

16 Nobel Prize-winning economists warn Trump policies will reignite inflation

21 minutes ago

2025 Volkswagen Golf R: This Is It

22 minutes ago

Promising rookie may have to battle for roster spot in 2024

22 minutes ago

Perinatal depression may increase cardiovascular disease risk

22 minutes ago

İbrahim Çelikkol involved in car accident, escapes with minor injuries

22 minutes ago

Jack Grealish posts a video of himself back on the training pitch during England's dire goalless draw with Slovenia - after being axed from Gareth Southgate's Euro 2024 squad

22 minutes ago

Decorated ex-Royal Marine detained by UAE ‘relieved’ to be back in Britain

22 minutes ago

Doctor Who season 2: Release date speculation, cast, and everything we know about Ncuti Gatwa’s next season

22 minutes ago

Stellantis: Vauxhall owner threatens to quit UK over ‘stupid’ EV sales mandate

22 minutes ago

Disability groups urge government to tread carefully with NDIS changes as minister gets in a tangle with the senators over Brazil trip

22 minutes ago

Rams News: Joshua Karty Brings Hope to Kicking Woes

22 minutes ago

Mitchell looks to defend title in Paris as part of Canada's Olympic cycling team

22 minutes ago

Consensus: Chicago Bears are not a playoff team for 2024 season

22 minutes ago

From dessert to donuts, treat yourself at the best places for sweets

22 minutes ago

Philadelphia 76ers Contenders to Sign New Orleans Pelicans Player

22 minutes ago

Brandon Aiyuk Calls Out 49ers Following Report of Declined Trade Offer Involving Him

22 minutes ago

Europe's big five leagues generate 19.6 billion euros in season post-COVID

22 minutes ago

Southgate asks fans to back his players after another poor performance

23 minutes ago

Texas authorities investigating why officer responding to a robbery had a man in his back seat before crash that killed mom and son

23 minutes ago

Houston water bills could be changing in August. Here's why

23 minutes ago

Delaware Senate gives final approval to bill mandating insurance coverage for abortions

23 minutes ago

Euro 2024 day 12: Austria cause a stir and England win group

25 minutes ago

The yuan's status as a global currency might be gaining ground. But top CEOs see more hurdles to clear

25 minutes ago

Chicago activists react after U.S. Surgeon General declares gun violence a public health crisis

26 minutes ago

S&P/TSX composite closes down as telecom and metal stocks fall, U.S. markets mixed

26 minutes ago

Kenya Moore Not Returning To Bravo’s ‘The Real Housewives Of Atlanta’ Following Suspension