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Chapter 5: Outcomes of Education
This chapter contains tables comparing educational attainment and workforce characteristics. The data show labor force status, income levels, and occupations of high school dropouts and high school and college graduates. Most of these tables are based on data from the U.S. Census Bureau and the U.S. Bureau of Labor Statistics. Population characteristics are provided for many of the measures to allow for comparisons among various demographic groups. While most of the tables in this chapter focus on labor market outcomes, the chapter ends with several tables on adults’ attitudes, skills, and participation in continuing education.
Statistics related to outcomes of education appear in other sections of the Digest. For example, statistics on educational attainment of the entire population are in chapter 1. More detailed data on the numbers of high school and college graduates can be found in chapters 2 and 3. Chapter 3 contains trend data on the percentage of high school completers going to college. Chapter 6 includes international comparisons of employment rates by educational attainment. Additional data on earnings by educational attainment may be obtained from the U.S. Census Bureau’s Current Population Reports, Series P-60. The U.S. Bureau of Labor Statistics has a series of publications regarding the educational characteristics of the labor force. Further information on survey methodologies can be found in Appendix A: Guide to Sources and in the publications cited in the table source notes.
Labor Force
In 2016, the labor force participation rate—that is, the percentage of people either employed or actively seeking employment—was generally higher for adults with higher levels of educational attainment than for those with less education. Among 25- to 64-year-old adults, 86 percent of those with a bachelor’s or higher degree participated in the labor force in 2016, compared with 72 percent of those who had completed only high school and 60 percent of those who had not completed high school (table 501.10). Within each education level, the labor force participation rate also varied by race/ethnicity. For 25- to 64-year-olds who had completed only high school, the 2016 labor force participation rate was highest for Hispanics (76 percent), followed by Asians (74 percent), then Whites (72 percent), then Blacks (68 percent), and then American Indians/Alaska Natives (63 percent). For 25- to 64-year-olds with a bachelor’s or higher degree in 2016, the labor force participation rate was highest for Blacks (88 percent), followed by Hispanics and Whites (both at 87 percent), and then American Indians/Alaska Natives (83 percent). The labor force participation rate for Asians with a bachelor’s or higher degree (82 percent) was lower than the rates for Blacks, Hispanics, and Whites, but not measurably different from the rate for American Indians/Alaska Natives.
In 2017, the unemployment rate—that is, the percentage of people in the labor force who are not employed and who have made specific efforts to find employment sometime during the prior 4 weeks—was generally higher for people with lower levels of educational attainment than for those with more education. The unemployment rate for 25- to 64-year-old adults who had not completed high school was 8 percent in 2017, compared with 5 percent for those who had completed only high school and 2 percent for those with a bachelor’s or higher degree (table 501.80). Within each education level, the unemployment rates for 16- to 19-year-olds and 20- to 24-year-olds tended to be higher than the unemployment rate for 25- to 64-year-olds. For example, among 20- to 24-year-olds who had not completed high school and were not enrolled in school, the 2017 unemployment rate was 16 percent, compared with 8 percent for 25- to 64-year-olds with the same level of educational attainment. Among adults in the 25- to 34-year-old age group, the 2017 unemployment rate was 13 percent for those who had not completed high school, 7 percent for high school completers, and 3 percent for those with a bachelor’s or higher degree (table 501.80 and figure 22).
In 2017, the employment to population ratio—that is, the percentage of the population that is employed—was generally higher for people with higher levels of educational attainment than for those with less education. Among 25- to 34-year-olds, for example, 86 percent of those with a bachelor’s or higher degree were employed in 2017, compared with 72 percent of those who had completed only high school and 57 percent of those who had not completed high school (table 501.50 and figure 23).
In 2017, about half (51 percent) of all employed people age 25 and over had a postsecondary (i.e., an associate’s or higher) degree (table 502.10). Seven percent of employed people age 25 and over had not completed high school.
The relative difficulties that high school dropouts encounter in entering the job market are highlighted by comparing the labor force participation and employment rates of recent high school dropouts with those of recent high school completers who did not immediately enroll in postsecondary education. In October 2016, about 51 percent of 2015–16 dropouts participated in the labor force (i.e., were either employed or looking for work), with 35 percent employed and 16 percent looking for work (table 504.20 and figure 24). In contrast, the labor force participation rate was 72 percent for 2015–16 high school completers who were not enrolled in college, with 58 percent employed and 14 percent looking for work (table 504.10 and figure 24).
Earnings
Median annual earnings were generally higher for adults with higher levels of educational attainment than for those with lower levels of educational attainment. Among full-time year-round workers age 25 and over, both males and females who had more education generally earned more than their counterparts of the same sex who had less education. In 2016, for example, males whose highest level of educational attainment was a bachelor’s degree earned 71 percent more than males whose highest level of attainment was high school completion, and females who had attained a bachelor’s degree earned 65 percent more than females who had only completed high school (table E, table 502.20, and figure 25).
Among full-time year-round workers age 25 and over, the earnings of females were lower than the earnings of males overall, as well as by education level. For example, median 2016 earnings for full-time year-round workers whose highest level of educational attainment was a bachelor’s degree were 38 percent higher for males than for females. Among those who had only completed high school, median 2016 earnings were 33 percent higher for males than for females.
From 1995 to 2016, percentage changes in earnings (after adjustment for inflation) varied by highest level of educational attainment and sex. For male full-time year-round workers age 25 and over who had started but not completed high school, the median annual earnings in 2016 ($32,490) were not measurably different from the earnings in 1995. The median earnings of males who had completed high school decreased 10 percent from 1995 ($46,480, in constant 2016 dollars) to 2016 ($41,890). For males whose highest level of educational attainment was a bachelor’s degree, there was no measurable difference between the median annual earnings in 2016 ($71,630) and in 1995, after adjustment for inflation. For female full-time year-round workers age 25 and over who had started but not completed high school, the median annual earnings in 2016 ($24,800) were not measurably different from the earnings in 1995. In constant 2016 dollars, the median earnings of females who had completed high school were 2 percent lower in 2016 ($31,540) than in 1995 ($32,230). For females whose highest level of attainment was a bachelor’s degree, median annual earnings in constant 2016 dollars were 3 percent higher in 2016 ($52,030) than in 1995 ($50,480).
For 25- to 29-year-old full-time year-round workers with a bachelor’s degree, median annual earnings were $48,270 in 2016 (table 505.10 and figure 26). However, the 2016 median annual earnings of 25- to 29-year-old full-time year-round workers with a bachelor’s degree varied by degree field. For example, when examining fields in which more than 200,000 25- to 29-year-olds held bachelor’s degrees in 2016, median annual earnings were over $60,000 for two fields: computer and information systems ($65,440) and engineering and engineering-related fields ($69,650). In contrast, median annual earnings in 2016 were below $45,000 for 25- to 29-year-old full-time year-round workers with a bachelor’s degree in fields such as fine and commercial arts ($39,830), psychology ($40,100), education ($40,240), and English language and literature ($40,280).
Overall, the median annual earnings of 25- to 29-year-old full-time year-round workers with a bachelor’s degree did not measurably change between 2010 and 2016 (after adjustment for inflation). However, changes in median annual earnings from 2010 to 2016 varied by degree field. For example, inflation-adjusted median annual earnings were lower in 2016 than in 2010 for those with a bachelor’s degree in health professions (6 percent lower) and education (4 percent lower). In contrast, inflation-adjusted median annual earnings were higher in 2016 than in 2010 for those with a bachelor’s degree in communications and communications technology (2 percent higher) and engineering and engineering-related fields (4 percent higher). There was no measurable change in inflation-adjusted median annual earnings for 25- to 29-year-old full-time year-round workers with a bachelor’s degree in business, computer and information systems, English language and literature, fine and commercial arts, the natural sciences, psychology, and the social sciences.
