Value of College Degree Held Falling: Wage Advantage Narrowing, Study Finds
The economic advantage of getting a college degree has declined sharply over the past five years, and the gloomy job prospects of graduates are likely to continue ÛÏeven if the whole economy reverts to full employment,Û according to a new study.</br></br>and fees,Û the professors found, ÛÏthe rate of return on the college, investment has fallen significantly.Û</br></br>According to tfieir estimates, the rate of return on a college diploma ÛÏdropped from 11 to 12 per cent in 1969 to 7 to 8 per cent in 1974.Û</br></br>The study said the ÛÏmajor- ence between the anticipated bustÛ in the college job mar-lifetime income of college ket stems from a'Supply glut! graduates and high school and a slower growth in de-! graduates, subtracting for col-mand for college 'graduates j ieÛÏe graduates both the in-</br></br>The study was done by Richard Freeman, a Harvard economist, and J. Herbert Hollo-mon, an engineering professor at the Massachusetts Institute of Technology! The results are published in the September is sue of Change magazine, higher education journal.