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Isn't there an inherent economic fallacy in the idea that "virtually every degree - regardless of the school or the major - could more than pay for itself becau

by mfoy_ 11y ago

Isn't there an inherent economic fallacy in the idea that "virtually every degree - regardless of the school or the major - could more than pay for itself because college graduates would command premium incomes"? If everyone has a bachelor's degree, how is everyone going to command a premium income?

sliverstorm 11y ago
It's an arms race. The ones early out the gate really do reap huge benefit but the system eventually equalizes.
at-fates-hands 11y ago
>> If everyone has a bachelor's degree, how is everyone going to command a premium income? Then it becomes a starting point, not an end point. Most businesses, when faced with a deluge of BA's, will start to look for people with master degrees. Same thing if they have a highly sought after position and get a deluge of people with masters, then they look for PhD candidates. This becomes an issue when you have a BA in a field where a majority of people have master degrees. I had several roommates who were engineering and CS graduates. At the time, the economy was shit (early 2000's) and they went back for their masters. Most said it was because when the economy finally bounced back, they would have a leg up on the people they were competing with. The only problem they found was as the economy recovered, they had more opportunities with a masters degree, but many were hired at the salary level of an entry level engineer.
bradleyjg 11y ago
Everyone doesn't have a bachelor's degree. About 1/3 of 25-29 year olds have one. It is true that the advice you cite couldn't apply to all conceivable scenarios, but if given in a specific time and place it could very well be correct. As I see it the problem is that it is actually correct at the present time. And despite the vast bulk of private schools claiming to be charitable organizations they act like rapacious capitalists. That being the case we can look at the equilibrium for firms in their positions, which is to capture virtually all of the surplus. That is exactly what they are in the process of doing. There's probably several different governmental solutions possible, and by all means if you are interested in this issue you should pursue them. But if you want to do something on a personal level, consider forgoing the use of a degree as a proxy in hiring. Just look for whatever ultimate skills and attributes you are interested in directly. This will have a cost to you, the signal is not totally empty, but if adopted on a widespread basis it will have the salutary effect of making colleges live and die on their direct contribution rather than resting on their credentialist laurels.
rconti 11y ago
That's exactly the problem. An undergrad degree is the new "minimum education".
- eimai134 11y ago
  The the more people that go to college, the less rigorous the material is.
eimai134 11y ago
Very true - especially when some of the people graduating with bachelor's degrees are practically illiterate (I know, they have worked for me). Soon it will require a master's degree to demand a middle-class salary - it's about at that point now (outside of tech at least).

by mfoy_ 11y ago

sliverstorm 11y ago

It's an arms race. The ones early out the gate really do reap huge benefit but the system eventually equalizes.

at-fates-hands 11y ago

>> If everyone has a bachelor's degree, how is everyone going to command a premium income? Then it becomes a starting point, not an end point. Most businesses, when faced with a deluge of BA's, will start to look for people with master degrees. Same thing if they have a highly sought after position and get a deluge of people with masters, then they look for PhD candidates. This becomes an issue when you have a BA in a field where a majority of people have master degrees. I had several roommates who were engineering and CS graduates. At the time, the economy was shit (early 2000's) and they went back for their masters. Most said it was because when the economy finally bounced back, they would have a leg up on the people they were competing with. The only problem they found was as the economy recovered, they had more opportunities with a masters degree, but many were hired at the salary level of an entry level engineer.

bradleyjg 11y ago

Everyone doesn't have a bachelor's degree. About 1/3 of 25-29 year olds have one. It is true that the advice you cite couldn't apply to all conceivable scenarios, but if given in a specific time and place it could very well be correct. As I see it the problem is that it is actually correct at the present time. And despite the vast bulk of private schools claiming to be charitable organizations they act like rapacious capitalists. That being the case we can look at the equilibrium for firms in their positions, which is to capture virtually all of the surplus. That is exactly what they are in the process of doing. There's probably several different governmental solutions possible, and by all means if you are interested in this issue you should pursue them. But if you want to do something on a personal level, consider forgoing the use of a degree as a proxy in hiring. Just look for whatever ultimate skills and attributes you are interested in directly. This will have a cost to you, the signal is not totally empty, but if adopted on a widespread basis it will have the salutary effect of making colleges live and die on their direct contribution rather than resting on their credentialist laurels.

rconti 11y ago

That's exactly the problem. An undergrad degree is the new "minimum education".

eimai134 11y ago
The the more people that go to college, the less rigorous the material is.

eimai134 11y ago

Very true - especially when some of the people graduating with bachelor's degrees are practically illiterate (I know, they have worked for me). Soon it will require a master's degree to demand a middle-class salary - it's about at that point now (outside of tech at least).