We have written frequently about the wage premium enjoyed by those with a four-year degree or more. And yet we continue with a public conversation that increasingly questions the value of getting a four-year degree or more. The reality is that a four-year degree or more is the most reliable path to a middle class or better career. End of story!
One of the main reason why a B.A. is the most reliable path is that the B.A. premium grows larger as one ages. The data below details this ever expanding premium. The data are for 2022 money earnings for full-time, year-round workers from all work: payroll jobs, gig jobs, self employment, second jobs, overtime pay, bonuses, you name it.
- 25-29 year olds with a B.A. have average work earnings of $77,090: $17,010 greater than those of the same age with an Associates Degree, $22,090 more than those with some college, no degree and $31,260 more than those with a high school degree.
- 30-34 year olds with a B.A. have average work earnings of $96,530: $33,560 greater than those of the same age with an Associates Degree, $40,930 more than those with some college, no degree and $43,830 more than those with a high school degree.
- 35-39 year olds with a B.A. have average work earnings of $109,900: $45,100 greater than those of the same age with an Associates Degree, $45,450 more than those with some college, no degree and $55,630 more than those with a high school degree.
- 40-44 year olds with a B.A. have average work earnings of $118,700: $47,570 greater than those of the same age with an Associates Degree, $56,550 more than those with some college, no degree and $57,530 more than those with a high school degree.
- 45-49 year olds with a B.A. have average work earnings of $121,000: $55,1900 greater than those of the same age with an Associates Degree, $48,490 more than those with some college, no degree and $60,960 more than those with a high school degree.
- 50-54 year olds with a B.A. have average work earnings of $123,800: $49,740 greater than those of the same age with an Associates Degree, $53,210 more than those with some college, no degree and $64,390 more than those with a high school degree.
- 55-59 year olds with a B.A. have average work earnings of $122,300: $48,440 greater than those of the same age with an Associates Degree, $50,680 more than those with some college, no degree and $62,400 more than those with a high school degree.
- 60-64 year olds with a B.A. have average work earnings of $125,900: $54,0700 greater than those of the same age with an Associates Degree, $54,620 more than those with some college, no degree and $62,180 more than those with a high school degree.
Apologies for so many numbers. But given all the misinformation about the value of a four-year degree we wanted to present the overwhelming case that over a forty-year career the B.A. premium is ever present and growing year after year after year. The B.A. premium compared to an Associates Degree starts around $17,000 and grows to around $50,000 annually at 45-49 and stays there through age 65. The B.A. premium compared to those with some college no degree starts at $22,000 and grows to $50,000 annually by 40-44 years old and stays there through age 64. And the B.A. premium compared to a high school graduate starts at $31,000 and grows to $50,000 annually by 35-39 and to around $60,000 annually by 45-49 and stays there through age 64.
