Higher Education and Net Worth

[wheywhey]

Higher Education's Varying Impact on Family Wealth

August 17, 2015

A new study by the Federal Reserve Bank of St. Louis raises questions about equity in American society and the role of higher education. Typically, educators argue that more education helps individuals and their families economically. The study found that, for white and Asian families, those headed by four-year college degree holders were better protected and gained wealth during the recent economic downturn and over the long term than were similar families without college degree holders. However, black and Latino families headed by someone with a four-year college degree fared worse than did black and Latino families without a degree holder. The report offers various theories for this inconsistency and suggest further research is needed.

Higher Education's Varying Impact on Family Wealth | InsideHigherEd

 

[wheywhey]

In the Balance - Issue 12

 

[wheywhey]

In the Balance - Issue 12

Higher education alone cannot level the playing field. Evidence presented here suggests that college degrees alone do not provide short-term wealth protection, nor do they guarantee long-term wealth accumulation. The underlying factors causing racial and ethnic wealth disparities undoubtedly are complex and deeply rooted. Further research is needed.3

 

[Poh SIti Dawn]

That's a trip. I wonder why if you have a degree and are colored, things look worse for your family

 

[Dafunkdoc_Unlimited]

That's a trip. I wonder why if you have a degree and are colored, things look worse for your family

White Supremacy. 'Black' people have been behind economically since the 19th century and racist government policies have been keeping us there.

We only accumulated about 2-3% of the Nation's wealth since Emancipation, have no appreciable assets/holdings, and are crippled due to non-existent generational wealth.

We have no economic 'safety net'.​

 

[wheywhey]

That's a trip. I wonder why if you have a degree and are colored, things look worse for your family

My guess is that in 2007 Hispanic and black college grads and non-college grad Asians had most of their net worth in real estate.

I think there are many reasons that Hispanic and black net worth has been negative for college grads since 1992. It may be the type of degrees earned and entering lower paying professions, student loan debt, expectation to finance other family members, not properly saving and investing, etc.

 

[Tate]

Would like to see this broken down school by school. See if perceptions of HBCUs or affirmative action have a gaugable affect

 

[wheywhey]

Would like to see this broken down school by school. See if perceptions of HBCUs or affirmative action have a gaugable affect

The University of Phoenix graduates the highest number of blacks every year and online Ashford University is usually second.

College attended, major studied, and profession after graduation would all be very informative.

 

[Tate]

The University of Phoenix graduates the highest number of blacks every year and online Ashford University is usually second.

College attended, major studied, and profession after graduation would all be very informative.

Good point, for profits slipped my mind. Doesn't do you any good to have a degree from a bad school and get 100k in loan debt for your trouble

 

[AJaRuleStan]

>Speaking about college degrees in the abstract.

I don't have the statistics on hand, but I'm pretty sure the inputs between Blacks and Asians, for example, is nothing close to being "equal" in terms of what degrees they went for and etc. So why should I expect to see equality in output.

 

[ADevilYouKhow]

Americans are poor and uneducated more at 6....



Zzz

 

[TLR Is Mental Poison]

 

[Ghanaian Armor]

Blacks don't have the privilege of being able to hedge against pappy's mortgage like Whites or Asians.

Remember that the next time yall dudes living at home get a basic chick asking "Why you don't got your own place".

"Because Black Folk need EQUITY bytch" should be your reply...

Black people need to be consolidating households but of course we gotta live larger than we actually are and Men buy these big homes to attract these big hoes.

Down-size and consolidate real estate and stack paper. My family has done this for generations in Alabama/Georgia no family member has ever been homeless...That house is our safety net. People fall on hard times come and go once they get back on their feet.

 

[theworldismine13]

My guess is that in 2007 Hispanic and black college grads and non-college grad Asians had most of their net worth in real estate.

I think there are many reasons that Hispanic and black net worth has been negative for college grads since 1992. It may be the type of degrees earned and entering lower paying professions, student loan debt, expectation to finance other family members, not properly saving and investing, etc.

yeah, i think it might be the degree, if you got a psychology degree from UoP for example, it wont make that much difference compared to the impact of an engineering degree

 

[wheywhey]

Does Going to a Selective College Matter?

[...]
That depends—for certain majors, going to a top-tier institution is invaluable. But for many career paths, it just doesn’t matter where a person got his or her education, according to arecent study from Eric Eide and Mark Showalter of Brigham Young University and Michael Hilmer of San Diego State University. The researchers compared the earnings of individuals from schools with different selectivity rankings, controlling for their majors and their level of degree attainment (e.g. those with solely bachelor’s degrees were compared to other’s with solely bachelor’s degrees) 10 years after they completed undergrad.

According to their results, school choice matters the most for business majors. Those who attended top schools earn 12 percent more than their peers who went to schools that were in the middle of the pack. And grads from those mid-tier institutions earned 6 percent more than their peers who went to the least-selective schools. For social science and education majors there was also a significant boost that came from attending a better-ranked school.

By contrast, engineers who went to the most selective schools enjoyed only a marginal earnings benefit over their peers at mid-tier institutions. And while humanities majors at the most elite schools enjoyed higher earnings than peers at the least selective schools, there was virtually no difference between top-tier and mid-tier earnings. For science majors, the prestige of a school mattered least of all. The authors found that the sciences exhibited the “statistically weakest earnings differences for a given major across college selectivity types." [...]

Does Going to an Elite College Really Boost Earnings?