The Mystery of Why Grads From 4 Year Colleges Earn More

It is a mystery whether college matters because it creates better human capital or creates signals that indicate graduates completed a long-term task.

What Signals Does a College Degree Really Send?

Some economists have an unexpected reason for the college earnings premium. First, the premium… In 2011, a diploma from a 4-year college meant you would earn 83% more than your high school classmate who did not attend college. Looked at slightly differently (below), the…