Education and Earnings

In the US, the earnings premium received by those with four year college degrees over those with no college degree has gone from 30% to over 90% over the past three decades suggesting that the economy’s skill requirements have outstripped the educational systems’ ability to meet them. Because the required skills acquired through formal education have become relatively scarcer, the education premium has risen, underpinning a more uneven more uneven distribution of income and wealth.