Views: For Many, College Isn't Worth It - Inside Higher Ed - 0 views
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George Mehaffy on 20 Jan 11"For Many, College Isn't Worth It January 20, 2011 By Richard Vedder In this space last Friday, Anthony Carnevale strongly and lengthily argued that "college is still worth it." He implicitly criticized those, including me, who rely on U.S. Bureau of Labor Statistics (BLS) data showing that the number of college graduates exceeds the number of available jobs that require a college degree. While he says many things, he has two main points. First, "There's just one problem with the official BLS statistics: they're wrong." Second, he notes that "the most persuasive evidence that the BLS numbers are wrong are earnings data which show employers across the country pay a 'wage premium' for college graduates…." I will argue that the BLS data are, in fact, pretty good, and that while Carnevale is factually correct about the earnings data, his interpretation of it is, at the minimum, misleading. Moreover, I will further argue that what is involved here is a classic application of what economists over the age of 50 call "Say's Law" (i.e., the theory suggesting that supply creates its own demand; economists under 50 are largely ignorant of it because they have no knowledge of the evolution of their own discipline, reflecting the general abandonment of thorough teaching of the history of economic thought). Furthermore, I will argue that diplomas are a highly expensive and inefficient screening device used by employers who are afraid to test potential employee skills owing to a most unfortunate Supreme Court decision and related legislation. Finally, I will assert that Carnevale and others who argue "college has a high payoff" are comparing apples with oranges -- i.e., they are making totally inappropriate comparisons that lead to skewed conclusions. An even-handed interpretation of the data is that college is "worth it" for some significant number of young people, but is a far more problematic investment for others. The call by President O