What is the value of a higher education?

The value of a high school diploma has dropped, and the value of a 4-year degree has been on a steady climb. What does this mean for the education sector of the US economy?

• Will Public education attempt to close the gap somehow? How will parents react?

• Answer:

  I would have to break it down into parts. What does it mean to the economy if there are a lot of high school drop-outs as compared to 4-year degree holders? I think it's self-explanatory: people don't want to study. There's not a single educational institution or a law or any other external means which would create enough pressure for a person to see the light of the day and yearn to achieve success. Success does not necessarily require a 4-year degree (there's not much correlation, and based on the latest statistics, the presence of the degree as related to future earnings is dropping). However, having some college education certainly helps - knowing the fundamentals of business and law, some accounting and the like will add value if a person chooses to become an entrepreneur. So unless a high-school diploma holder gets tired of working for a minimum wage (mostly in the service industry or a temporary employment agency), there's not much anyone can do. This is said rather harshly but consider this: if someone is getting a minimum wage and is on a social support program (subsidies such as foodstamps), such person is effectively close to the poverty line. There are numerous programs (financial aid, grants, etc) that will enable such person to go back to school: the greater the need for financial assistance, the more help this person will get. And these are grants, and not loans (don't need to pay them back). Again, what's missing is the desire to get up and find all these resources. You and I won't be able to help a person who does not want a better future for themselves. What does it mean for the educational sector if there is a prevalence of high school diploma holders while a 4-year degree provides an improved future earnings stream? It means that schools are not doing their job of recruiting and educating students. Right now students are becoming more and more cognizant of their role in the educational system - students are consumers, and they want a better value for their money.