Page 46 - ДЛЯ ФЛИПЕРА_Neat

Does Education Really Lead to

Greater Earning Power?

Whether it’s parents shuttling their children off to elementary school or students
starting their final year of college, back-to-school season is here. We generally
spend a minimum of 12 years as a student, more if you pursue a college de-

gree. Along the way, we’re told that education is critical to your ability to earn a
decent living.
But, it begs the question, do the seemingly endless nights at the library studying
for exams make a difference? Does pursuing education typically translate into a
higher paying job? Indeed, our analysis shows that students won’t regret pur-
suing a higher education. And, as housing economists, we know that a higher-
paying job improves the likelihood that one can achieve homeownership.
“So then, millennials, as you begrudgingly make your way to the libra-
ry, just remember that it will all pay off, it’s just a matter of time.”
Millennials Must Really Like School

Millennials are the largest generation cohort we’ve ever seen. While the bulk of
them are turning 30 next year and solidly into their careers, many millennials are
recent college graduates and newcomers to the professional world, and many
are still in college.
In fact, according to our research, millennials are the most educated generation
we’ve ever had by several measures. Approximately 40 percent of millennials
ages 25 to 37 have a bachelor’s degree or higher, compared with just 15 per-
cent of the Silent Generation, 25 percent of Baby Boomers and about 30 per-
cent of Gen Xers when they were the same age. Millennials also reached the
threshold of 30 percent having earned a bachelor’s degree at a much younger
age than previous generations. By their mid-40s, 30 percent of Boomers had a
bachelor’s degree. Gen Xers reached the mark by their early 30s, but millen-
nials achieved the educational milestone by their mid-20s.
For millennials, it’s clear the trend is more education, and earlier in life. But, of
course, education takes time and money. Millennials have delayed key lifestyle
decisions, such as marriage and having children, in favor of investing in the pur-
suit of education, pushing marriage and family formation to their early-to-mid-
30s compared with previous generations, who primarily made these lifestyle
choices in their twenties. In fact, according to Census data, in the 1970s, eight
in 10 people married by the time they turned 30. Today, the same level

of marriage does not occur until the age of 45.