Annual Earnings of Young Adults, by Educational Attainment

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Vol 1, Issue 3, Topic: Crosscutting Statistics

This article was originally published as an Indicator of the Month, taken from The Condition of Education: 1998. The sample survey data are from the March Current Population Survey (CPS), conducted by the U.S. Census Bureau.

Wages and salaries are influenced by many factors, including the employer's perception of the productivity and availability of workers with different levels of education and the economic conditions in the industries that typically employ workers with different levels of education. Annual earnings are influenced by the number of weeks worked in a year and the usual hours worked each week. The ratio of annual earnings of high school dropouts or college graduates to the annual earnings of high school completers is affected by all of these factors: it is a measure of the earnings disadvantage of not finishing high school and the earnings advantage of completing college.

In 1996, the median annual earnings of young adults ages 25-34 who had not completed high school were substantially lower than those of their counterparts who had completed high school (31 and 36 percent lower for males and females, respectively). Young adults who had completed a bachelor's degree or higher earned substantially more than those who had earned no more than a high school diploma or GED (54 and 88 percent more for males and females, respectively).
Between 1980 and 1996, the earnings advantage of obtaining a bachelor's degree or higher increased for males, rising from 19 to 54 percent.
Since 1980, the earnings advantage of 25- to 34- year-olds with some college or a bachelor's degree or higher (relative to their counterparts who had completed high school) was generally greater for females than for males.

Ratio of median annual earnings wageand salary workers ages 25-34 whose highest education level was grades 9-11, some college, and a bachelor's degree or higher to those with high school diploma or GED, by sex: 1970-96

Ratio of median annual earnings of wage and salary workers ages 25-34 whose highest education level was grades 9-11, some college, and a bachelor's degree or higher to those with a high school diploma or GED, by sex: 1970-96

NOTE: This ratio is most useful when compared to 1.0. For example, the ratio of 1.54 in 1996 for males whose highest education level was a bachelor's degree or higher means that they earned 54 percent more than males who had a high school diploma or GED. The ratio of 0.69 in 1996 for males whose highest education level was grades 9-11 means that they earned 31 percent less than males who had a high school diploma or GED.

The Current Population Survey (CPS) questions used to obtain educational attainment data were changed in 1992.

SOURCE: U.S. Department of Commerce, Bureau of the Census, Current Population Survey, March (various years).

Ratio of median annual earnings of wage and salary workers ages 25-34 whose highest education level was grades 9-11, some college, and a bachelor’s degree or higher to those with a high school diploma or GED, by sex: 1970-96

The Current Population Survey (CPS) questions used to obtain educational attainment data were changed in 1992.

SOURCE: U.S. Department of Commerce, Bureau of the Census, Current Population Survey, March (various years).

Data source: The U.S. Census Bureau's Current Population Survey (CPS), March (various years).

For technical information, see

Wirt, J., Snyder, T., Sable, J., Choy, S.P., Bae, Y., Stennett, J., Gruner, A., and Perie, M. (1998). The Condition of Education: 1998 (NCES 98-013).

For complete supplemental and standard error tables, see either

the electronic version of The Condition of Education: 1998 (http://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=98013), or
volume 2 of the printed version (1999): The Condition of Education: 1998 Supplemental and Standard Error Tables (NCES 1999-025).

Author affiliations: J. Wirt and T. Snyder, NCES; J. Sable, Y. Bae, and J. Stennett, Pinkerton Computer Consultants, Inc.; S.P. Choy, MPR Associates, Inc.; and M. Perie and A. Gruner, American Institutes for Research.

For questions about content, contact John Wirt (john.wirt@ed.gov).

To obtain this Indicator of the Month (NCES 1999-009), call the toll-free ED Pubs number (877-433-7827) or visit the NCES Web Site (http://nces.ed.gov).