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Fundamentally attending college has an implied understanding of completing college. That almost completely explains the non linear gains from graduating. It’s
by addicted 7y ago
Fundamentally attending college has an implied understanding of completing college. That almost completely explains the non linear gains from graduating.
It’s similar to closing a house sale. The money earned by brokers who get the buyer to sign the contract is exponentially more than the money earned by the brokers who only get 90% of the way there.
That doesn’t mean that the value of the initial 90% of the work is 0.
Of course, this is an extreme example for illustration purposes, because real estate is a step function where the returns go from 0 to 100 at a single point.
The exponentially higher earnings of grads can similarly be explained as a step function where earnings go from 50 to 100 after a certain event. And it’s not even that surprising, because the event in question is completing the thing that you actually stepped out to do.