Why It’s Hard to Shake Skepticism About College
Graduation day is often seen as a moment of triumph, but it’s also a time filled with relief and uncertainty. For many graduates, the question is whether the time, money, and effort invested in a degree will truly pay off.
A recent report shows that confidence in higher education is at a low, especially among Republicans, who are particularly skeptical about the value of a four-year degree. According to a Pew Research Center study, only 25% of Americans believe a four-year degree is crucial for securing a well-paying job in today’s economy. The current challenges in securing a job haven’t helped improve perceptions—recent college grads are facing an unemployment rate of 5.8%, significantly higher than the overall unemployment rate of 4.2%.
Many of these job market challenges stem more from economic factors than from the value of a college degree. In 2021, the U.S. faced the “Great Resignation,” when many workers left their jobs in search of better opportunities. However, as inflation increased and the Federal Reserve raised interest rates in 2022, demand for white-collar jobs in industries like technology and consulting began to decline. As my colleague Derek Thompson put it, “The Great Resignation has turned into the ‘Great Stay.’” While jobs are still being added, the number of available positions has decreased.
Meanwhile, wage growth in traditionally low-wage industries like retail and hospitality has been significant, but experts note that this boost may not be sustainable. Low-wage jobs typically experience stagnant wages over time, whereas college-educated workers tend to see their wages increase as they move into more specialized and professional roles.
Though the data still supports the financial benefits of a college degree—college grads earn 50% more than those with only a high school diploma—it’s clear that the wage gap hasn’t grown significantly in recent years. Employers have found it easier to hire high-school graduates for entry-level jobs, especially in industries where technology has not advanced to the point where a degree is needed. Moreover, emerging technologies like generative AI could further reduce the demand for entry-level jobs traditionally filled by college graduates.
Despite this, the wage premium for college graduates remains significant, but the benefits are increasingly uneven. A study by Zachary Bleemer and Sarah Quincy found that college offered equal wage benefits for students from both low- and high-income families until the 1960s. Since then, the return on college education has grown, but the benefits for lower-income students have decreased. This is largely due to the fact that lower-income students are less likely to attend selective universities and more likely to enroll in community or for-profit colleges, which often offer fewer high-paying job opportunities.
Bleemer also pointed out that lower-income students are often excluded from high-wage fields like computer science and engineering, fields where higher-income students tend to have a stronger presence. However, Bleemer notes that college is still valuable for these students, particularly those who are on the cusp of being accepted into public higher education systems.
While the data shows that college remains a good investment, the growing distrust in higher education is not entirely rooted in financial concerns. It also stems from broader political views and doubts about the value of academic institutions. Many Americans lack trust in these institutions, and universities must work harder to regain that trust by reinforcing their role as places of learning, personal growth, and opportunity.
Investing in higher education at both the state and federal levels could help improve public perception and make college a more accessible and valuable experience. However, with political pressures increasing, particularly under the Trump administration’s efforts to reduce federal funding to schools, it’s uncertain whether this investment will be prioritized.
As we consider the future of college education, it’s clear that while higher education continues to offer significant benefits, questions about its value remain, shaped by both economic and ideological factors.