Is your degree just a ticket to better wages?

Students wondering what kind of job they can get with an undergraduate degree might do well to broaden their idea of the payoff of education. 

An undergraduate degree is one way, among many, that employers filter and choose job candidates.

“When you get a university degree, some economists would argue that you’re not learning skills that the employer values, but demonstrating that you are a productive worker,” said James Townsend, associate economics professor at the University of Winnipeg.

While making a living is certainly important and necessary, the job market value of a bachelor’s degree isn’t the only measure of its worth.

Labour economists like Craig Riddell at the University of British Columbia have compiled findings on the broader social benefits of post-secondary education. It turns out that there are many benefits, beyond just individual earnings.

In a 2003 background paper on the role of government in post-secondary education in Ontario, Riddell examines social benefits of post-secondary education that range from improved health and longevity to decreased crime rates. Riddell draws from studies across Canada, the United States and the United Kingdom.

It’s not that those with post-secondary education know more about health. Rather, they are more likely to put to use any healthy living information that they may come across. This can have positive impacts on the family, as children of more educated parents tend to have better health outcomes as well.

Children in communities with higher average education levels are also less likely to drop out of school, according to Riddell’s study summary.

Continuing education may help reduce crime, because more education generally leads to greater wages. Taking part in criminal activity is that much more costly if the person is foregoing greater wages. 

Higher education levels are also positively correlated with increased civic participation. Riddell finds in some studies that college entrance raises the probability that a person will vote by 20 to 30 per cent.

Of course, correlation is not causation. There may be other reasons, like levels of individual motivation, which simply can’t be measured These other factors may explain why someone who is more likely to pursue further education is also more likely to, for example, take part in civic life.

Whether you view an undergraduate degree as purely a signal to employers about your productivity, or more broadly in quality of life terms, higher average education levels benefits everyone in society, not just the individual.

Riddell’s study summary can be viewed here: http://tiny.cc/7ijlh