Adults with advanced degrees earn four times more than those with less than a high school diploma, according to new U.S. Census Bureau data.
Tabulations included in the report Educational Attainment in the United States: 2006, which the bureau released March 15, show that adults 18 and older with either a master’s, doctoral or professional degree earned an average of $79,946 in 2005, while those with less than a high school diploma earned about $19,915. Adults with a bachelor’s degree earned an average of $54,689, while those with a high school diploma earned $29,448.
Table 1, below, shows the relative average annual earnings for adults 25–64, by education level. The trend holds true for this major subgroup as well.
Table 1. Average Earnings in 2005 by Educational Attainment of the Population 25 to 64 Years of Age
In 2006, 86 percent of all adults 25 and older reported completing at least high school. More than one quarter (28 percent) of adults 25 and older had attained at least a bachelor's degree.
High school graduation rates for women 25 and older continue to exceed those of men, 86 percent to 85 percent, respectively. However, a larger proportion of men hold a bachelor’s or higher-level degree (29 percent compared with 27 percent of women).
Non-Hispanic whites have the highest proportion of adults with a high school diploma or higher (91 percent), followed by Asians (87 percent), blacks (81 percent) and Hispanics (59 percent).
Table 2, which follows, looks beyond educational attainment rates and toward average earnings for full-time, year round workers -- by race and ethnicity -- when educational attainment is equal. The easiest way to understand the disparities in earnings is to look at the percentages at the bottom of the table.
Table 2. Average Earnings in 2005 by Educational Attainment of the Population 25 to 64 Years of Age by Race and Ethnicity
African-Americans, across the board, bring home less than 80 percent of what their Non-Hispanic white counterparts earn, regardless of educational attainment. The story for Hispanics is similar, though the range is much more variable. While their overall earnings are just 63 percent of whites’, the numbers for Hispanics with a master’s degree rise to 87 percent, while professionals fall back to 67.6 percent.
Earnings for the Asian population come closest to matching those of Non-Hispanic whites. In fact, their overall average earnings are slightly better, due to a higher overall level of educational attainment. Nevertheless, there are glaring disparities, especially at the professional level where Asians average earnings share is only 75 percent.
Finally, we take a look below the national level. Here we find that Minnesota and Alaska had the highest proportions of people 25 and older with a high school diploma or better (around 93 percent), while the District of Columbia had the greatest proportion of people 25 and older with a bachelor’s degree or higher (49 percent). Table 3, below, provides data for all states and ranks them by percentage of Bachelor’s degrees.
Table 3. Educational Attainment by State in 2005
Michigan, with a college graduation rate of 26.1 percent, falls slightly below the middle of the pack, in 29th place. A look at the states above us illustrates that we have a relatively long way to go to compete with many of the fastest growing areas of the country economically - Massachusetts, Georgia, California, Minnesota, New York, Illinois, etc.
On the other hand, many of the states below us, such as North Carolina, Texas, Arizona, South Carolina, etc., are growing as well – due to weak unions, warm climates and a large stream of migrants. In addition, much of the internal migration is comprised of highly educated individuals, a trend balanced by immigrants from Mexico, and Central and South America, who tend to have much less education.
Our final table looks at Michigan in detail. In Table 4, it is apparent that high school and, particularly, college graduation rates differ across demographic groups. The 25-44 year old group shows a graduation rate 6 points above the average – 32.1 percent. This highlights a trend that Michigan must accelerate – increasing college graduation rates among our younger population. Our major challenge is providing opportunities that will keep them in the state once they have attained their degrees. While women slightly outdistance men at high school graduation, the male college rate is three points higher than that of females.
Table 4. Educational Attainment in 2005 for Michigan, by Age, Gender, race and Ethnicity
The greatest disparities are shown in the racial/ethnic distribution. Our Asian population, a group that combines highly educated immigrants with a strong education ethic, has a 62 percent college graduation rate. Following, at a great distance, are Non-Hispanic whites, at 27 percent.
Once again, the racial gap in education is front and center when we look at our African-American and Hispanic populations. While African-Americans have seen their high school graduation rates rise to a respectable 87 percent, college graduates represent less than 17 percent. Our Hispanic/Latino population is still dealing with issues of poorly educated immigrants and a significant high school dropout problem. As a result, their high school graduation rate trails all other groups at 72.5 percent. This, of course, results in a low college graduation rate, which stands at 13.5 percent.
United Way’s Agenda for Change is emphasizing the need to keep kids in school and reduce the educational attainment gaps. Please join us in this important endeavor. To learn more, click here. |
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