A new report commissioned by legislators in Colorado examines the immediate and long-term values of a post-secondary education. Overall, those who earn a bachelor’s degree can expect to increase their starting annual wages by more than 50% over ten years, while those who earn an associate degree or certificate can expect wage increases of one-third or less.
The wage increase over time is a critical piece of information, especially for non-traditional students, student parents, and minority and female students. Wage increases over time are important for these groups, since they are most likely to have dependents, or need to make up for earning potential lost through unemployment or forgone through low-wage employment.
Not surprisingly, the report found that Black and Hispanic workers receive the lowest annual salary increases over time, while White and Asian workers tend to maximize their wage increases. Educational attainment alone does not account for all wage increases; in fact, on-the-job experience is more likely to determine wage increases, especially over time. It does speak to the impact of starting salaries for Black and Hispanic workers compared to their White and Asian counterparts.
Workers in the information technology and professional, scientific and technical sectors experienced the highest wage growth, while workers in the retail sector saw the lowest overall wage increases. Manufacturing jobs provided a high overall average wage, but locally, experts predicted only a modest increase to the number of available positions there.
Healthcare occupations offered a comparatively modest average salary, but the number of openings in the healthcare sector substantially outpaced openings in all other sectors the report examined. Healthcare positions are most likely to require a post-secondary degree, licensure/certification, and/or significant on-the-job experience. Information technology employment is likely to require a combination of post-secondary education, certification, and on-the job experience.
Institutions should help students plan for impact of future wage increases
The report echoes a recent report issued by the Project on Workforce and Harvard University in terms of information access and accuracy. The Colorado report found that accurate information regarding regional and statewide employment opportunities was critical to directing students to the areas of greatest employment need.
Providing incoming students and prospective students with the information they need to make good career decisions early in their studies can help avoid long periods of unemployment and underemployment following graduation. It can also help students to make better decisions about fulfilling career aspirations when they initially enter a post-secondary program.
It is also critical to provide students with accurate post-graduation earnings data to ensure that those who need to borrow to finance their education can afford the student loan repayments following graduation.
The report encourages institutions to develop better, more consistent communication with students to help them adjust their plans when necessary while they are still in school. Additionally, institutions should try to direct students from marginalized groups to higher-wage occupations to offset potential wage bias in the workplace.
Photo Credit: Nic McPhee, via Flickr
