Texas Study Finds College Graduates Outearn Non-Graduates by $87,000 Over 15 Years

A new analysis of Texas public college students shows that bachelor's degree holders generally outearn those who never attended college, even after subtracting tuition and other costs. The Postsecondary Commission, a nonprofit education group, tracked roughly 29,000 students who enrolled in bachelor's programs during the 2008-09 academic year.

Researchers calculated cumulative net value-added earnings over the following 15 years by comparing total earnings against those of workers who never attended college and subtracting expenses such as tuition, room and board, and forgone wages. On average, college entrants outearned high school graduates by almost $87,000 over the 15-year period.

Engineering and architecture majors recorded the highest returns. Liberal arts majors, whose degrees often lead to lower earnings, still outperformed non-graduates by about $35,000. Michael Itzkowitz, president of higher education consulting firm HEA Group, said those pursuing a bachelor's degree regardless of field are likely making a wise investment.

"This study is quite rigorous, as it takes opportunity costs into account, meaning it includes the foregone costs of spending time in college in comparison to those who begin working straight out of high school," he said.

The same analysis examined associate's degree and certificate programs. Most associate's degree enrollees generated positive returns, with construction trades providing the strongest payoff at nearly $73,000 over 10 years. Construction trade certificates produced the highest return among certificate programs at roughly $48,000 after five years.

Seven certificate fields, including social sciences and information technology, resulted in net losses during that period. The study is limited to Texas students who began college nearly two decades ago.