The Diminishing Returns of a College Education on Wealth Generation for African Americans

A new study by researchers at the Federal Reserve Bank of St. Louis finds that the benefits of a college education as it relates to wealth are far less than has been the case in the past. This is particularly true for African American college graduates, many of whom have their wealth sapped by the burden of having to pay off student loans.

Make no mistake: People of all races who are college educated earn more and generate more wealth than their peers who did not go to college. However, over time, this advantage has shrunk dramatically, particularly for African Americans.

The study found that White college graduates born in the 1930s were worth 247 percent more than their non-college-educated peers. But White people born in the 1980s were worth just 42 percent more. For Black families where the head of household was a college graduate in the 1930s, their wealth exceeded their non-college-educated peers by 500 percent. For Black families born in the 1970s and 1980s, the wealth premium for college graduates compared to their non-college-educated peers did not exist.

The full study, “Is College Still Worth It? The New Calculus of Falling Returns,” may be downloaded by clicking here.

Related Articles

Leave a Reply

Get the JBHE Weekly Bulletin

Receive our weekly email newsletter delivered to your inbox

Latest News

Black Film Project and Film Studies Fellowships Established at Harvard University

Henry Louis Gates Jr., professor and director of the Hutchins Center for African and African American Research at Harvard University, will direct the newly established Black Film Project, an initiative aiming to support independent films focusing on Black history and culture.

Higher Education Grants or Gifts of Interest to African Americans

Here is this week’s news of grants or gifts to historically Black colleges and universities or for programs of particular interest to African Americans in higher education.

Yale Library Acquires Digital Collection of Langston Hughes Papers

In a recent December upload, the Yale University Library added a collection of papers from Black poet Langston Hughes to the school's online archive. The collection contains correspondence between Hughes and other authors and civil rights activists of his time.

Academic Fields Where Blacks Earned Few or No Doctoral Degrees in 2022

In 2022, African Americans earned 1.2 percent of all mathematics and statistics doctorates, 1.2 percent of all doctorates in computer science, 1.7 percent of all doctorates in chemistry, and only 1.7 percent of all doctorates awarded in engineering disciplines.

Featured Jobs