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IWS Documented News Service
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Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
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Census

American Community Survey Data on Educational Attainment

Supplement to Education and Synthetic Work-life Earnings [17 November 2011]
http://www.census.gov/hhes/socdemo/education/data/acs/index.html

In September, the Census Bureau released a study that examined the economic value of educational attainment by estimating the amount of money that people might earn over the course of a 40-year career given their level of education. In response to the high level of media interest in these findings, the Census Bureau today released a series of supplemental tables. These tables include an estimate for the total population — all people regardless of gender, race, and Hispanic origin. They show that a person with bachelor’s degree working full time from ages 25 to 65 would have $1 million more in earnings than a similar person with high school diploma.

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See ORIGNAL NEWS RELEASE & REPORT

Report
http://www.census.gov/prod/2011pubs/acs-14.pdf

[full-text, 16 pages]

Press Release 17 November 2011
Education Impacts Work-Life Earnings Five Times More Than Other Demographic Factors, Census Bureau Reports

http://www.census.gov/newsroom/releases/archives/education/cb11-153.html

     According to a new U.S. Census Bureau study, education levels had more effect on earnings over a 40-year span in the workforce than any other demographic factor, such as gender, race and Hispanic origin. For example, a worker with a professional degree is expected to make more than a worker with a eighth grade education or lower.

    Some groups, such as non-Hispanic white males, Asian males and Asian females, benefit more from higher levels of education than other groups over a 40-year career for those with a professional degree. White males with a professional degree make more than double (about $2.4 million more) than that of Hispanic females with the same level of education.

    (Note: Hispanics may be any race. All references in this news release to race groups such as black or white exclude Hispanic members of the race group in question; that is, all are “non-Hispanic.”)

    Many factors, such as race and Hispanic origin, gender, citizenship, English-speaking ability and geographic location do influence work-life earnings but none had as much impact as education. The estimated impact on annual earnings between a professional degree and an eighth grade education was about $72,000 a year, roughly five times the impact of gender, which was $13,000.

    These findings come from the report Education and Synthetic Work-Life Earnings, [PDF] which looks at the economic value of educational attainment by estimating the amount of money that people might earn over the course of a 40-year work-life given their level of education. The report also looks at the effect of other factors, such as race and gender groups and other characteristics with regard to this relationship.

     “This analysis shows that there is a clear and well-defined relationship between education and earnings,” said Tiffany Julian, an analyst in the Census Bureau's Housing and Household Economic Statistics Division. “The overall economic value of educational attainment in this report supports the belief that higher levels of education are well-established paths to better jobs and higher earnings.”

     Other highlights:

• Overall, white males had higher earnings than any other group at every education level, with the exception of those with a master's degree, which was topped by Asian males, and those with a professional degree, where Asian males were not significantly different from white males.
• In general, women in the most economically advantaged race groups usually earn less than men in the most disadvantaged race groups. For example, a white female with master's degree is expected to earn $2.4 million over a 40-year work-life. In comparison, a Hispanic male with a master's degree is expected to earn $2.8 million.
• For Asian, black and Hispanic groups whose highest education completed is high school, the difference between each group's work-life earnings was not large compared with the differences between these groups when they had higher levels of education.
• Asian men and women with a bachelor's degree or higher had greater returns on higher education than blacks or Hispanics of either gender. For example, an Asian female with a professional degree made $3.7 million in work-life earnings compared with $2.3 million for a Hispanic female with a professional degree.
• Naturalized citizens saw a small yearly increase in earnings over the native-born population ($1,210), but those who were not citizens made $2,446 less a year than the native-born.
• Language spoken at home had an effect on earnings: those who spoke a language at home other than English saw a decrease in annual earnings after considering all other factors. Even those who speak English “very well” saw a decrease of $989 in annual earnings compared with English-only speakers.
• Geography impacted earnings, showing higher earnings in the Pacific states and in New England and lowest earnings in East South Central states.

    Data for this research comes from the 2006-2008 3-year American Community Survey. All estimates are presented in 2008 dollars and represent the amount of estimated money that one can expect to earn from ages 25 to 64.

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This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

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Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                   
Telephone: (607) 262-6041               
Fax: (607) 255-9641                       
E-mail: smb6@cornell.edu                  
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